SUBSCRIBER NOTE: Platts proposes to publish iron ore impurity differentials

Platts is inviting industry feedback on a proposal to publish daily impurity differentials used in the normalization process for its iron ore assessments. The proposal arises from market feedback expressed during industry consultations.

The differentials would be for alumina and silica content applicable within specific ranges. The values used in normalization would be expressed in dollars per dry metric ton for every one percentage point of alumina and silica. Proposed ranges for alumina and silica are as follows, alumina 1-2.5% and silica 4.5-6.5%. Platts intends to monitor penalties and premiums for impurities outside these ranges and continue to publish information about those values on a case-by-case basis.

The differentials would be continuously monitored and updated to reflect spot market values. Platts currently uses differentials in its normalization process and writes about them in the iron ore commentaries published in SBB Steel Market Daily and page MW1107-09 of Platts Metals Alert (PMA). Platts is proposing to publish these values in the daily iron ore assessment table on page 3 and on page MW1105 of PMA and to database the values, making them available in data products.

All comments and questions should be sent by April 18, 2014 to iodex@platts.com and pricegroup@platts.com.