SUBSCRIBER NOTE: Platts to discontinue IODEX FOB India netbacks based on Handymax

Following a period of industry feedback, S&P Global Platts will discontinue iron ore west coast and east coast India IODEX FOB netback assessments based on Handymax freight rates (Codes: IONBW00, IONBE00, IONBW03, IONBE03) and simultaneously launch 58%-Fe FOB netbacks based on Supramax freight rates for west coast India iron ore, effective September 4, 2017. Charterers have preferred to move iron ore from west coast India to China on larger vessels, such as Supramaxes, resulting in a prolonged absence of spot market activity on the smaller Handymax vessel class. Platts will be launching FOB netbacks based on Platts assessed Supramax freight rates to move 50,000 mt (plus/minus 10%) iron ore loading from west coast India, basis Mormugao port in Goa (Code: IOWIC00), for delivery to Qingdao, China. India's iron ore from Goa has made a consistent re-appearance in the export market, following the removal of duty on low grade iron ore of below 58%-Fe content in 2016.

As a result of India's current 30% export duty on iron ore with 58% and above Fe content, the majority of the iron ore exported has been sub-58% Fe, and not in the medium grade range of 60-63.5% Fe. This west coast India FOB netback will therefore be based on Platts Iron ore fines 58%-Fe CFR China (Code: IODFE00). The Supramax 58%-Fe FOB netback assessments will be calculated assuming a moisture level of 11% for iron ore cargoes loading from west coast India. Platts will be discontinuing these Handymax IODEX FOB netback assessments and launching Supramax 58%-Fe FOB with effect from September 4, 2017. Any further questions or feedback should be sent 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 to the public upon request.