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

Platts, part of S&P Global Commodity Insights, launched 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 new NBL assessment reflects trading activity in Caofeidian and Jingtang in northern China. The new PBL assessment reflects 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 are published in Yuan/wmt, on an FOT basis.

The launch is in response to an increase in trading activity in the Chinese portside market and industry demand for assessments for mainstream lump. Platts 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.

Platts also launched 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 are:

The assessments 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.

A full description of Platts assessment methodology and data hierarchy can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Platts-Assessments-Methodology-Guide.pdf .

The launch was 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 .

The decision to implement the proposed launch was communicated in a subscriber note published Sept. 18: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/091823-platts-to-launch-pbl-nbl-iron-ore-china-port-stock-lump-prices-in-expansion-of-iopex-assessments

The proposal came in response to growth in liquidity in the Chinese portside market and industry demand for port assessments in additional regions. Platts conducted an industry-wide consultation before making the proposal, which can be found 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 assessments are 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.

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