SUBSCRIBER NOTE: Platts changes iron ore lump premium assessment from weekly to daily

S&P Global Platts has increased from August 1, 2017 the frequency of Platts iron ore spot lump premium assessment 62.5%-Fe CFR China (Code: IOCLP00) to a daily basis from a weekly assessment published on Wednesdays.

Feedback from market participants supported this move to a daily assessment.

Spot liquidity in the iron ore lump market has increased since the start of the year, and Platts has observed that the lump premium market can show marked movement on a daily basis.

The increase in assessment frequency will fully reflect this increase in spot market liquidity.

In addition, Platts has clarified that the iron ore lump premium will be assessed as a premium to the average of Platts IODEX assessments in the month which lies at the middle of Platts 2- to 8-week delivery period, or 35 days forward from the date of publication, also known as the Mid-Window Month.

For all lump premium indications over a base month other than the Mid-Window Month, Platts will normalize to the Mid-Window Month using the iron ore fines derivatives forward curve.

This is to ensure that the underlying structure of the iron ore fines base is accounted for when assessing the lump premium, and to compare all lump premium indications against the same base.

Please send any feedback or questions to IODEX@spglobal.com and pricemethodology@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 those not marked as confidential available to the public upon request.