Platts to launch 65% Fe CFR China iron ore forward curve, update spot spec

Following a proposal period, S&P Global Platts has decided to update the specifications of its 65% Fe CFR China iron ore fines spot assessment effective Jan. 4, 2021, and to start assessing a respective derivative forward curve, effective Nov. 2, 2020.

Platts launched a formal proposal on Aug. 12, 2020, in a subscriber note available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/081220-platts-proposes-to-launch-65-fe-cfr-china-iron-ore-forward-curve-update-spot-spec

SPECIFICATION CHANGE: Effective Jan. 4, 2021, Platts will amend the specifications of the 65% Fe iron ore fines assessment (IOPRM00) to 1.4% alumina, 2% silica and 0.065% phosphorus, from current 1% alumina, 3.5% silica and 0.075% phosphorus. The change will bring this assessment in line with the latest specifications seen in the high grade fines segment of the market. The affected assessment is published on the fixed page 1105 of the real-time Platts Steel Alert and Platts Metals Alert, on page 16 of SBB Steel Markets Daily, in Platts Market Center and in the Platts price database.

FORWARD CURVE: Effective Nov. 2, 2020, Platts will launch a new daily assessment of 65% Fe Fines CFR China Derivative Forward Curve, in response to the growing liquidity in this segment of the iron ore derivatives market. The assessments will reflect the daily values at 5:30 pm Singapore time for 65% Fe iron ore fines derivative contracts, on a CFR China basis, normalized to a minimum volume of 5,000 mt, in line with the standard industry practice. Platts will publish derivatives assessments for current month (Mo0), month one (Mo01), second month (Mo02) and third month (Mo03) strips, which roll on the first day of the month. Platts will collect trade information from active market participants and forward curves from brokers. Derivative bids/offers and trades will continue to be published in real time throughout the day on the Platts electronic information service and Platts Metals Alert (PMA), along with information in the physical market. The new assessments will be published on the fixed page 1113 of the real-time Platts Steel Alert and Platts Metals Alert, on page 17 of SBB Steel Markets Daily, in Platts Market Center and in the Platts price database.

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

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