Platts to launch world's first daily carbon-accounted iron ore assessment, IODEX carbon intensity premium

Platts, part of S&P Global Commodity Insights, will launch a daily Carbon-Accounted IODEX price assessment, an IODEX Carbon Intensity Premium, and other carbon intensity values that will be updated monthly, effective Sept. 30, 2024.

The new carbon-accounted series, which Platts understands to be a world first for the iron ore market, will complement Platts established IODEX benchmark and suite of iron ore assessments globally, and builds on Platts existing carbon-accounted assessments for steel and aluminum.

The upcoming launch responds to increasing market demand in quantifying carbon emissions in the iron- and steelmaking value chain, as reporting and regulatory requirements evolve with more stringent environmental, social and governance criteria.

The Carbon-Accounted IODEX assessment will represent an all-in price based on the addition of the new IODEX Carbon Intensity Premium to the existing IODEX 62% Fe CFR China assessment (IODBZ00). The IODEX Carbon Intensity Premium will reflect the cost of offsetting greenhouse gas emissions in the mining and transportation of iron ore fines relevant to the IODEX basket, using credits derived from nature- and technology-based carbon capture methods.

The IODEX Carbon Intensity Premium will be calculated by applying the Platts Carbon Removal Credit (CRC) Assessment (ACRCA00) to IODEX Carbon Intensity, a new iron ore supply chain carbon intensity value. IODEX Carbon Intensity will reflect emissions intensity for IODEX Mining, Transportation and Loading for the IODEX brands combined with a shipping intensity value. The Shipping Carbon Intensity will reflect the maritime shipping of iron ore fines from Australia and Brazil to Qingdao, China.

The new assessments will be published in $/dmt:

The first monthly average calculations will update on Nov. 1, reflecting the average of daily assessments published throughout October.

Additionally, Platts will publish the following carbon intensity values in kilograms of carbon dioxide-equivalents per dry metric ton (kg CO2e/dmt):

For further clarity, the full calculations for the new assessments will be as follows:

- The full calculation for IODEX Carbon Intensity (CAIAG00) will be: IODEX Mining, Transportation & Loading Carbon Intensity (CAIAC00) + Iron Ore Shipping Carbon Intensity to Qingdao, China (CAIAD00)

- The full calculation for the IODEX Carbon Intensity Premium (CAIAB00) will be: IODEX Carbon Intensity (CAIAG00)/1,000 to convert from kilograms to metric tons * Platts CRC (ACRCA00)

- The full calculation for Carbon-Accounted IODEX (CAIAA00) will be: IODEX (IODBZ00) + IODEX Carbon Intensity Premium (CAIAB00)

Platts will also publish Shipping Carbon Intensity (CI) values reflecting transportation from Dampier, Port Hedland and Port of Ponta Da Madeira to other destinations in north and south China, providing additional carbon intensity information on the transportation of iron ore fines.

Carbon-Accounted IODEX and the IODEX Carbon Intensity Premium will follow the Singapore holiday calendar. These assessments will be calculated daily, with publication timing reflecting underlying assessment timestamps for Platts IODEX and Platts CRC.

The iron ore supply chain carbon intensity values will be published on a monthly basis on the 15th of each month.

Platts iron ore specifications guide can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/metals/iron-ore-methodology

Platts carbon markets specifications guide can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Method_Carbon_Credits.pdf

The daily assessments and associated monthly averages will be published on the real-time Platts Steel Alert and Platts Metals Alert pages 0360, 1150, in SBB Steel Markets Daily and in the Platts price database.

The monthly carbon intensity calculations will be published on the real-time Platts Steel Alert and Platts Metals Alert pages 0360 and in the Platts price database.

Please send feedback, comments and questions 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.