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

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

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

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

The new assessments are published in $/dmt:

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

Additionally, Platts has published 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 are as follows:

• The full calculation for IODEX Carbon Intensity (CAIAG00) is: 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) is: IODEX Carbon Intensity (CAIAG00)/1,000 to convert from kilograms to metric tons * Platts CRC (ACRCA00)
• The full calculation for Carbon-Accounted IODEX (CAIAA00) is: IODEX (IODBZ00) + IODEX Carbon Intensity Premium (CAIAB00)

Platts has also published Shipping Carbon Intensity values reflecting transportation from Dampier, Port Hedland and Port of Ponta Da Madeira to other destinations in northern and southern China, providing additional carbon intensity information on the transportation of iron ore fines.

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

The iron ore supply chain carbon intensity values are 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: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/method_carbon_credits.pdf

Platts announced the launch of the new assessment series on Sept. 25, in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/092524-platts-to-launch-worlds-first-daily-carbon-accounted-iron-ore-assessment-iodex-carbon-intensity-premium

The daily assessments and associated monthly averages are 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 are published on 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

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