SUBSCRIBER NOTE: Platts to launch daily FOT China iron ore port stock assessments

S&P Global Platts will publish six daily spot price assessments for iron ore port stocks in China on a free-on-truck basis, starting August 1, 2017.

IOPEX: Platts will launch two Iron Ore Port Index (IOPEX) assessments valuing regional prices. North China IOPEX will reflect trade activity in Caofeidian and Jingtang; East China IOPEX will reflect trade activity in Rizhao and Qingdao. Their full names and price codes will be: - IOPEX 62%-Fe FOT North China (IOPNC00) - IOPEX 62%-Fe FOT East China (IOPEC00) As these assessments seek to reflect the marginal tonne in these regions, the most competitive values observed in either port reflected will form the basis of the assessment.

These are the specifications to which indications will be normalized for both assessments: Quality: iron content -- 62%; silica -- 4%; alumina -- 2.25%; phosphorous -- 0.09%; sulfur -- 0.02%; moisture -- 8% Quantity: minimum tonnage reflected: 5,000 mt. Indications normalized to 10,000 mt clip size Lead Time: prompt delivery Payment Terms: Telegraphic Transfer/Cash Against Documents Unit of Measurement: Yuan/dmt

RATIONALE FOR LAUNCH: The growth in iron ore port stocks trade has been evident in recent months and Platts' new price assessments will seek to reflect the tradable value of the marginal, spot tonne of medium grade iron ore fines in China's key consumption and trading regions. Such coverage has been requested by many market participants and informal feedback has been supportive of both market assessments as well as assessments of the most liquid brands. Market participants' demand for these numbers reflects the growing importance of port stocks and the desire to see how the port stock trade interacts with seaborne pricing. Insight into these two regions' pricing may aid spot decision-making by illustrating arbitrage.

BRAND ASSESSMENTS: In addition, Platts will also assess 61.5%-Fe Pilbara Blend Fines and 63%-Fe Newman Fines at the two port clusters on an outright price basis, per dry metric tonne. Therefore, Platts will assess these brands on a North China and East China basis. Their full names and price codes will be: - 61.5%-Fe Pilbara Blend North China Yuan/dmt (IOPBA00) - 63%-Fe Newman North China Yuan/dmt (IOPBB00) - 61.5%-Fe Pilbara Blend East China Yuan/dmt (IOPBC00) - 63%-Fe Newman East China Yuan/dmt (IOPBD00) DATA COLLECTION: Platts will collect transactional data until 5:30 pm Singapore time. These assessments will seek to value the market's tradable value at that timestamp; transactions concluded - or competitive bids and offers standing -- closest to the Market on Close timestamp will be prioritized in the assessment. The data will be collected from active market participants in the relevant trade route. Market participants will also be able to report trade data to the Platts editorial team. In the absence of relevant transactional data, firm bids or offers, and indicative values will be used to value the market. The assessments will follow the Singapore public holiday calendar and will be published in Platts SBB Steel Markets Daily, Platts Price Analyzer and Platts Metals Alert.

Please submit any feedback, comments or questions about this proposal to pricemethodology@spglobal.com and IODEX@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.