Platts clarifies iron ore lump premium assessment approach leading up to Jan. 2, 2026

Platts, part of S&P Global Commodity Insights, clarifies that it will make use of its 62/61% Fe IODEX Basis Spread in deriving the value of the forward 62% Fe iron ore fines strip underlying its iron ore lump premium assessment from Nov. 12 to Dec. 31, 2025, when the fines strip will comprise dates from 2026.

Platts typical approach calculates a proxy value of the forward fines strip used in the assessment of the lump premium, by using the underlying fines derivatives covering the 43 days that correspond to the 14-56 day forward timing specification.

While the lump premium will continue to be assessed over a corresponding forward strip of 62% Fe fines before 2026, the underlying fines strip will start to take 2026 derivative values into account from Nov. 12. The derivatives curve for iron ore fines is migrating to a 61% Fe specification for contracts dated from January 2026 onwards (see table), following Platts earlier notification of upcoming changes to the baseline quality specification of its benchmark IODEX assessment.

Platts will therefore convert parts of the strip derived from 61% Fe derivatives to a 62% Fe basis using the 62/61% Fe IODEX Basis Spread (FIOCS00) from Nov. 12 to Dec. 31, 2025, so that the entirety of the forward fines strip used in the assessment of the lump premium will remain on a 62% Fe basis before 2026.

For example, on Nov. 12, 2025, when the underlying fines strip will comprise dates in November 2025, December 2025 and January 2026, Platts will convert the value of the January 2026 dates from a 61% Fe basis to a 62% Fe basis by adding the value of the Nov. 12 Basis Spread to the corresponding 61% Fe derivative.

The following calendar outlines the derivative contracts underlying the 62% Fe fines strip for the dates leading up to Dec. 31, with those that will reflect a 61% Fe basis and that will be converted underlined:

As previously communicated, Platts lump premium will be assessed over a 61% Fe fines strip reflecting the updated IODEX specifications from Jan. 2, 2026. As the updated IODEX specifications will have higher levels of impurities, this is expected to result in a one-off difference in the value of the lump premium then and the lump premium on Dec. 31, 2025, when it will still be assessed over a 62% Fe fines strip reflecting the current IODEX specifications.

The affected assessments are as follows:

Platts first proposed to update the quality specifications of its iron ore lump assessments in a June 10 subscriber note available here .

Platts communicated its decision to update the specifications in a July 1 subscriber note available here.

Platts iron ore assessments are published in SBB Steel Markets Daily, Steel Price Report, World Steel Review, Steel Raw Materials Monthly and Global Market Outlook, on the real-time Steel Raw Materials Alert and in the Platts price database .

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

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