Platts to launch IOPEX 62% Fe domestic China iron ore FOT Yangtze River port, brand price assessments

Platts, part of S&P Global Commodity Insights, will launch daily IOPEX 62% Fe domestic Chinese iron ore price assessments and two brand price assessments on a free-on-truck Yangtze River ports basis, effective April 3, 2023, expanding Platts existing suite of port stock assessments.

The new assessments will represent the spot price of medium-grade iron ore fines, as well as brand assessments of Pilbara Blend Fines and Newman High Grade Fines, in Yuan/wmt, on an FOT basis, reflecting trading activity in the eastern Chinese cities of Jiangyin, Taicang and Zhenjiang along the Yangtze River. Platts may normalize price information obtained for medium-grade fines from other Yangtze River port locations to the stated location basis.

Platts will also launch an import parity price (IPP) calculation for Yangtze River ports assessments in $/dmt, accounting for moisture content, exchange rate, port charges and value added tax.

Following industry consultation, the new assessment specifications will be:

The assessments will consider market information reported to Platts and published through the day, including firm bids and offers, transactions and indications, as well as any other information deemed relevant to the assessment process. Full description of the Platts assessments methodology and data hierarchy can be found here: https://www.spglobal.com/platts/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/platts-assessments-methodology-guide.pdf

The launch was initially proposed Feb. 20 in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/022023-platts-proposes-iopex-62-fe-domestic-china-iron-ore-fot-yangtze-river-port-brand-price-assessments

The proposal came in response to growth in liquidity in the Chinese portside market and industry demand for port assessments in additional regions. Platts conducted an industry-wide consultation before making the proposal, which can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/120522-platts-opens-consultation-on-iopex-domestic-chinese-iron-ore-port-stock-indices

The assessments will be published on fixed page 0120 of the real-time Platts Steel Alert and Platts Metals Alert, on SBB Steel Markets Daily, on Platts Dimensions Pro, in Platts Market Center and in the Platts price database.

Please send comments and questions to IODEX@spglobal.com and pricegroup@spglobal.com.

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Platts will consider all comments received and will make comments not marked as confidential available upon request.