Platts adjusts global DR grade pellet premium methodology

S&P Global Platts has changed the pricing basis for its existing assessment of the direct reduction (DR) grade pellet premium (IODRP00), effective April 1, 2020.

This follows feedback to a proposal published on February 25, 2020, which can be found online here: www.spglobal.com

Platts is now assessing its DR pellet premium over 62% Fe IODEX CFR China fines assessment (IODBZ00), adjusted for specific location, basis of sale and quality to the 67.5% Fe specification. The premium is net of any adjustments for iron content.

Platts publishes the premium, based on the adjusted 62% Fe fines CFR China assessment, alongside a new DR pellet premium, which is based on the 65% Fe Fines CFR China assessment, adjusted for iron content.

Both assessments are published on the first business day of the month and follow the London holiday calendar. Both assessments represent the value of the market-based contractual 'premium' for high quality DR-grade pellets negotiated and used as a reference in formulating a provisional contract settlement price for pellets typically sold under term contracts to steel mills, primarily in the Middle East, North Africa, and in the Americas.

Please send all comments, feedback and questions to IODEX@spglobal.com and pricegroup@spglobal.com. For written comments, please provide 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.