Platts proposes to introduce maximum document presentation period for seaborne iron ore MOC process

Platts, part of S&P Global Commodity Insights, is proposing to introduce a maximum presentation period of up to 38 days after shipment for all bids and offers reported for its seaborne iron ore fines Market on Close (MOC) assessment process, effective Feb. 19, 2024.

The proposed change would be an addition to the existing assessment specification of 31 documentation days, to which information is normalized. The change would provide standardization to the reporting process and clarity for market participants on the expected document presentation period.

Under this proposal, MOC participants reporting offers of cargoes with document presentation periods above the 31-day normalization threshold would need to state the presentation period up front – up to a maximum of 38 days. Participants reporting bids would be expected to accept cargoes with presentation periods up to 38 days.

Platts would continue to normalize bids, offers and trades with a documentation presentation period between 32 and 38 days, based on prevailing differentials observed in the market.

The presentation period of documentation is a key factor in iron ore trading as it determines when a cargo may be lifted or resold.

The proposed change reflects market feedback that cargoes with a presentation period longer than 38 days may have restricted potential to be resold in the seaborne market due to a more limited pool of buyers.

Information reported to Platts with a document presentation period beyond 38 days may be normalized and considered for the assessment on a case-by-case basis.

Platts full iron ore assessment specifications are available here:

https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/metals/iron-ore-methodology

Platts invites feedback on this proposal to IODEX@spglobal.com and pricegroup@spglobal.com by Jan. 12, 2024.

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 make comments not marked as confidential available upon request.