S&P Global Platts proposes changes to its 58%-Fe iron ore coverage

S&P Global Platts is updating its sub note seeking feedback on two separate proposals published on January 31, as part of a broad review of its coverage of iron ore grades with less than 60%-Fe.

58%-FE FINES SPECIFICATION CHANGE: Platts proposes to amend the specifications of the 58% iron ore fines assessment (IODFE00) to 2.9% alumina, 6% silica and 0.06% phosphorus, from 4% alumina, 5% silica and 0.05% phosphorus currently, effective May 1, 2020. The proposed specifications are aligned with the major Australian iron ore brands in this segment of the market, but also reflect closely the average specification of global iron ore brands in this segment of the market. Under the proposal, iron ore fines with Fe content below 60%, including the brands that currently fall under the assessment for 58% low alumina iron ore fines CFR China index (IONC580 & TS01047), may be considered under the 58% iron ore fines CFR China index and normalized according to Value-in-Use (VIU) assessments and observed brand relativities. The proposal aims to bring the 58% iron ore fines assessment (IODFE00) in line with latest specifications seen in this segment of the market and to deepen the liquidity underpinning the assessment.

Here is the link to proposal published on January 31: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/013120-sampp-global-platts-proposes-changes-to-its-58-fe-iron-ore-coverage

Accordingly, the Iron ore 58%-Fe West India netback price (IODFA00) would reflect the new specifications and would be automatically calculated by deducting the assessed freight rate between West coast India and Qingdao for a 50,000 mt (Supramax) iron ore cargo from the 58% Fe iron ore fines CFR China assessment.

58% LOW ALUMINA FINES DISCONTINUATION: Simultaneously, Platts is proposing to discontinue the Platts & TSI IO Fines 58% Fe low alumina iron ore fines CFR China assessments (IONC580 & TS01047), effective October 1, 2020. This proposal comes in response to a general lack of liquidity and declining production volumes for low alumina iron ore fines with Fe content below 60%. The specifications for the Platts & TSI IO Fines 58% Fe low alumina iron ore fines index are 58% Fe, 1.5% alumina, 5.5% silica, 0.05% phosphorus, 0.02% sulfur and 9% moisture. Alongside the discontinuation of the daily assessment, the monthly average code (IONC583) and the rolling monthly average code (TSMBX03) would also be discontinued accordingly.

The affected assessments are published on the fixed page PMA1105 and PMA1106 of the real-time Platts Metals Alert, on page 2 and 6 of the Steel Markets Daily, in the Platts Market Center and in the Platts price database.

Please send all comments, feedback and questions to IODEX@spglobal.com and pricegroup@spglobal.com by March 16, 2020.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.