Subscriber note: Platts proposes spot assessment for iron ore lump premium

Platts is seeking industry feedback on its proposal to publish, from April 24, 2013, a spot price assessment for iron ore lump premium. The premium would be published weekly, on Wednesdays, on a dollar per dry metric ton unit basis, and would complement the quarterly lump premium contract price settlement that Platts started publishing on March 15, 2013. The assessment would represent the premium that lump product carries over fines as observed in the spot market, arriving in China two to eight weeks forward from the date of publication. Lump in the spot market has increasingly been transacting on the basis of a premium to the Platts Iron Ore Index, and initial feedback from the market has shown a desire for greater informational transparency on this trade flow. Where transactions, bids or offers occur on a dry metric ton instead of a dmtu basis, the observed premium would be converted to a dmtu basis for assessment purposes. The lump premium would be published in Platts SBB Steel Markets Daily, Platts Metals Alert and the Platts SBB Price Analyzer. Please address any feedback or questions by April 12, 2013, to Keith Tan, keith_tan@platts.com with a copy to iodex@platts.com and pricegroup@platts.com