SUBSCRIBER NOTE: Platts to launch Iron ore pellet fixed price assessment

S&P Global Platts will start assessing a weekly iron ore pellet assessment on a fixed price, CFR Qingdao basis, effective from October 17, 2018.

This assessment will be published Wednesdays, or the nearest prior working day, in case of a public holiday in Singapore.

Platts received positive market feedback during its consultation to start publishing a fixed price pellet and floating price assessment. Market participants across the pellet supply chain have seen more Indian pellets being sold into China in the spot market, which is largely being sold on a fixed price basis. At the same time, floating price is being used in the secondary pellet market as well as some steel mills procurement process. Therefore, launching a new fixed price and floating price pellet index to capture and reflect this market activity was supported by the pellet market. The new pellet assessment will, though, consider material from all origins, normalizing back to the base specification where appropriate.

The new pellet assessment will reflect the following underlying chemical and physical specifications: 64% iron, 2.7% alumina, 3.5% silica, 0.08% phosphorus, 0.08% sulfur, 230 Cold Crushing Strength (CCS), and a maximum undersize of 5% under 5mm.

Platts will start to publish this value in the daily iron ore assessment table in SBB Steel Markets Daily on page 3 and on page MW1161 of PMA and to database the value, making it available in data products under the category SI.

Please send all questions and feedback to IODEX@spglobal.com and pricegroup@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 comments not marked as confidential available upon request.