Platts to change normalization threshold of document presentation period applied to seaborne iron ore fines assessments

Following a consultation period, Platts, part of S&P Global Commodity Insights, will change the threshold of the document presentation period considered in the normalization applied to its seaborne iron ore fines assessments to 31 days after shipment, effective Nov. 21, 2022.

The decision aims to respond to changes in delivery terms widely accepted by the market and industry demand for more detailed normalization factors in the assessments.

Platts has observed that the typical document presentation period in the seaborne iron ore fines market does not exceed 31 days after the shipment date and notes that a longer document presentation period might impact cargo value, particularly for some medium-grade iron ore fines.

Under the change, Platts may normalize bids, offers and trades with a document presentation period longer than 31 days, based on prevailing differentials observed in the market. Participants in the iron ore physical MOC process would be expected to clearly state in offers if the documentation presentation period is longer than 31 days. Currently, bids, offers and trades with a document presentation period longer than 35 days may be normalized.

The change was initially proposed Oct. 5 in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/100522-platts-proposes-to-change-normalization-threshold-of-document-presentation-period-applied-to-seaborne-iron-ore-fines-asse

Platts seaborne iron ore fines assessments are published on fixed page 1105 of the real-time Platts Steel Alert and Platts Metals Alert, on 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 (iodex@spglobal.com) and price group (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.