SUBSCRIBER NOTE: Platts opens consultation on proposed launch of iron ore brand assessments

S&P Global Platts is opening a formal consultation regarding the possible launch of iron ore brand assessments to add to its existing iron ore market coverage.

Platts invites comments, questions, and other feedback on this proposal by July 22, 2016.

Platts is studying the possibility of starting to assess iron ore brand values on an outright price basis and as a differential to IODEX 62% Fe CFR China.

These brand assessments would cover up to 12 Australia- and Brazil-origin grades of ore. RATIONALE FOR POSSIBLE LAUNCH:

Platts has discussed the potential launch of iron ore brand assessments with market participants for several months.

Brand assessments have brought greater transparency and efficiency to adjacent markets such as coking coal.

At this point in the iron ore market's evolution, brand differentials are becoming more central to spot trade due, in part, to the increased proliferation of floating price transactions whose differentials to an underlying index can be broken down into component parts of impurity values, brand premiums, or discounts and timing.

Most likely, if Platts were to assess brand differentials, more visible competitive comparison could be carried out by market participants, allowing for greater efficiencies in pricing different impurities and iron content of globally-traded ore grades.

Please send all comments, feedback and questions to iodex@spglobal.com and pricemethodology@spglobal.com.

Specifically, Platts invites views on the merits of launching brand assessments.

Platts will study all feedback received on these points and any other areas of interest, and provide an update on any possible changes to methodology after the close of the review period.

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.