Platts clarifies 63% CFR China iron ore pellet assessments amid changing trade flows

Platts, part of S&P Global Commodity Insights, is clarifying its approach to 63% CFR China iron ore pellet assessments amid changing trade flows following the introduction of Indian export duties.

Platts has observed a steep drop in seaborne liquidity for 63% Fe pellets since May, when India announced the implementation of 45% export duties on iron ore pellets. Prior to May, India was a leading exporter of 63% pellets.

While the assessments consider imports from all origins, the India duties have led to a significant decrease in bids, offers and trades. Platts is therefore clarifying that in the absence of higher quality market information, price indications from adjacent markets are considered in the assessment process for 63% pellets.

Adjacent markets include:

• 65% Fe pellets CFR China
• Lump CFR China
• China domestic pellets
• China portside imported pellet stock

Platts also closely monitors the spreads between 65% Fe and 62% Fe iron ore fines and average steel mill margins, which might affect buying appetite. Seasonal weather conditions and other factors affecting demand for pellet and alternatives are also considered.

Platts publishes a premium and an outright price assessment for 63% CFR China iron ore pellets on a daily basis, following the Singapore holiday calendar.

Assessment symbols are as follows:

The assessments are published on page 1161 of Platts Steel Alert and Platts Metals Alert, in SBB Steel Markets Daily, in Platts Market Center, Platts Dimensions Pro and in the Platts price database.

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