Platts to launch PBL, NBL iron ore China port stock lump prices in expansion of IOPEX assessments

Platts, part of S&P Global Commodity Insights, will launch two new daily Chinese iron ore port stock price assessments for Australian Newman Blend Lump (NBL) on a free-on-truck north China ports basis and Australian Pilbara Blend Lump (PBL) on a free-on-truck east China ports basis, effective Oct. 16, 2023, further expanding its suite of IOPEX assessments.

The launch is in response to an increase in trading activities in the Chinese portside market and industry demand for assessments for mainstream lump. Platts has observed growing volumes of port stocks of NBL and PBL in north and east China, respectively, which constitute a material share of Chinese port stock trading volumes. Mining companies BHP and Rio Tinto reported higher volumes of lump shipments in the first half of 2023 at 38 million mt and 35.9 million mt, respectively, up 2.9% and 7.5% year on year.

The new assessments were initially proposed Aug. 25 in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/082523-platts-proposes-pbl-nbl-iron-ore-china-port-stock-lump-assessments-to-complement-iopex

Platts earlier carried out an industry consultation, announced here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/120522-platts-opens-consultation-on-iopex-domestic-chinese-iron-ore-port-stock-indices

The new NBL assessment will reflect trading activity in Caofeidian and Jingtang in northern China. The new PBL assessment will reflect trading activity in Rizhao and Qingdao in eastern China. Platts may consider pricing information for cargoes delivered to other northern and eastern ports in the assessments, after normalization to the stated location basis. The assessments would be published in Yuan/wmt, on an FOT basis.

Platts will also launch an import parity price (IPP) calculation for NBL lump premium in north China and PBL lump premium in east China, respectively, in $/dmtu, accounting for the moisture content, exchange rate, port charges and value added tax.

The assessment specifications will be:

The assessments will consider market information reported to Platts and published through the day, including firm bids and offers, transactions and indications, as well as any other information deemed relevant to the assessment process.

Full description of the Platts assessments methodology and data hierarchy can be found here: https://www.spglobal.com/platts/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/platts-assessments-methodology-guide.pdf

The assessments will be published on fixed page 0120 of the real-time Platts Steel Alert and Platts Metals Alert, in SBB Steel Markets Daily, on Platts Dimensions Pro, in Platts Market Center and in the Platts price database.

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

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