SUBSCRIBER NOTE: Platts clarifies Iron ore 58%-Fe netback West India Supramax calculation

S&P Global Platts wishes to clarify that the Iron Ore 58%-Fe netback West India Supramax (Code: IODFA00) price is calculated by deducting the assessed Iron Ore Mormugao, WC India – Qingdao Supramax freight rate (Code: IOWIC00) for a 50,000-mt cargo from the IO Fines Fe 58% CFR China assessment (Code: IODFE00) on the day, after normalizing the assumed moisture level of 11% for iron ore cargoes loading from West Coast India to a dry metric ton basis .

For example, on July 16, 2019:

- 58% CFR China price (IODFE00): $106.75/dmt

- W. India to Qingdao freight for Iron Ore (IOWIC00): $15/mt

- Converting the freight rate to a /dmt basis: $15/(1-0.11)dmt=$16.85/dmt

- FOB India (Mormugao) (IODFA00) is: $106.75-$16.85=$89.9/dmt

The quality of cargo reflected in the FOB India price remains the same as the quality Platts assesses for IO Fines Fe 58% CFR China with regard to 58% Fe, 15% silica, 4% alumina and 0.05% phosphorus, while assumed moisture content of 11% in India cargo is normalized to a dry metric ton basis.

Please send all questions and feedback to IODEX@spglobal.com and pricegroup@spglobal.com

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