Platts Atlantic, DR iron ore pellet pricing to continue only using IODEX

S&P Global Platts, after extensive feedback and engagement with pellet producers, steel and DRI participants, has decided not to add blast furnace and direct reduction pellet premiums and a total dmtu blast furnace pellet pricing on a 65% Fe fines index in pricing formulas as initially published in a subscriber note on December 19, 2019.

Platts will maintain existing IODEX 62% Fe fines references as the sole basis reference in its monthly contract pellet pricing assessments.

Platts will continue to monitor the basis formula of pellet contracts in its assessment of the monthly premium reflected in typical term contracts in the Atlantic.

At this time, Platts is satisfied that a significant portion of producers and consumers of iron ore pellets are using and seek to maintain 62% Fe fines for base pricing, represented by IODEX, due to higher trade liquidity and the greater number of participants it reflects.

Please submit any feedback, comments or questions about this proposal to IODEX@spglobal.com; and pricegroup@spglobal.com.

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.