SUBSCRIBER NOTE: Platts proposes to publish Atlantic iron ore pellet premium

Platts is inviting industry feedback by May 9, 2014, on a proposal to publish, starting June 2, 2014, the pellet premium used in the calculation of its existing monthly Atlantic Basin iron ore pellet contract price series (SB01095). The proposal arises from market feedback seeking greater clarity on the premium component through its separate publication. The pellet premium will reflect the value agreed in term contracts between producers and consumers for high-quality blast furnace pellet traded in the Atlantic basin. Reflecting current industry practice, the premium is expressed over a formula comprising the IODEX after deducting a freight netback and an adjustment using the 1%-Fe differential. The premium would be expressed as a single number in dollars/dry metric ton. The pellet premium will be published in Platts Metals Alert and Steel Markets Daily. Any queries, comments and questions should to addressed to iodex@platts.com and pricegroup@platts.com.