SUBSCRIBER NOTE: Platts launches Atlantic iron ore pellet premium

Platts has launched publication starting June 2, 2014, of the pellet premium used in the calculation of its existing monthly Atlantic Basin iron ore pellet contract price series (SB01095). This follows market feedback seeking greater clarity on the premium component used by the industry to calculate the total pellet price. The pellet premium reflects the value agreed in term contracts between producers and consumers for high-quality blast furnace pellet traded in the Atlantic Basin. The quality nominally reflects 65% Fe Brazilian iron ore pellets. Reflecting current industry practice, the premium is expressed over a formula comprising the IODEX after deducting a freight netback to the Brazilian port of Tubarao 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.