Platts proposes SSF and Carajas iron ore China port stock brand assessments to complement IOPEX

Following industry consultation, Platts, part of S&P Global Commodity Insights, is proposing to launch four new daily Chinese iron ore port stock price assessments for Australian Super Special Fines (SSF) and Brazilian Iron Ore Carajas (IOCJ) fines on a free-on-truck North China and East China ports basis, effective July 3, 2023, expanding Platts existing port stock brands and complementing the recent expansion of its suite of IOPEX assessments .

The proposal is in response to rising traction and liquidity in the Chinese portside market and industry demand for assessments for additional grades and brands. Platts earlier carried out an industry consultation, announced here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/120522-platts-opens-consultation-on-iopex-domestic-chinese-iron-ore-port-stock-indices.

Platts has observed significant production volume and port stocks for SSF and IOCJ, which constitute a material share of Chinese port stock trade volumes.

The new brand assessments, in Yuan/wmt, on an FOT basis, would reflect trading activity in Caofeidian and Jingtang in Northern China, and Rizhao and Qingdao in Eastern China. Platts may consider pricing information for cargoes delivered to other eastern and northern ports in the assessment, after normalization to the stated location basis.

Platts currently publishes 62% Fe iron ore port stock assessments, or IOPEX, and brand assessments of Pilbara Blend Fines and Newman High Grade Fines on an FOT basis in East and North China, and at eastern Chinese cities along the Yangtze River. IOPEX 62% assessments continue to be a marker for medium-grade iron ore fines. Under this proposal, the new brand assessments for SSF and IOCJ would not typically be normalized for consideration in the IOPEX 62% assessments.

The proposed assessment specifications are:

The assessments would consider market information reported to Platts and published through the day, including firm bids and offers, transactions and indications, as well as any other information deemed relevant to the assessment process.

Full description of the Platts assessments methodology and data hierarchy can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Platts-Assessments-Methodology-Guide.pdf.

The assessments would be published on fixed page 0120 of the real-time Platts Steel Alert and Platts Metals Alert, in SBB Steel Markets Daily, on Platts Dimensions Pro, in Platts Market Center and in the Platts price database.

Platts invites feedback on this proposal to IODEX@spglobal.com and pricegroup@spglobal.com by May 31, 2023. 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.