Platts proposes to update Asia Iron Ore MOC volume guidelines for seaborne Pilbara Blend Fines

Platts, part of S&P Global Commodity Insights, is proposing to update its Asia iron ore Market on Close (MOC) volume guidelines for seaborne Pilbara Blend Fines (PBF), effective Jan. 2, 2024, to better reflect typical traded spot market volumes.

Currently, Platts specifies 80,000-90,000 mt and 170,000-190,000 mt as standard volumes for seaborne PBF bids in the MOC assessment process. Under the proposal, Platts would remove 80,000-90,000 mt as a standard volume and maintain the 170,000-190,000 mt volume range.

Spot market data published by Platts between January 2022 and September 2023 showed that 86% of all spot PBF transactions observed were of cargo sizes 170,000-190,000 mt, while those that were 80,000-90,000 mt accounted for just 3% of the trades. The remaining trades were for cargo sizes outside of these volume ranges.

Feedback from market participants has indicated that a price difference could arise between spot cargoes of sizes 170,000-190,000 mt and 80,000-90,000 mt due to the relatively small number of trades that take place in the latter size.

Based on this proposal, 170,000-190,000 mt would become the only cargo size accepted by Platts for PBF bids reported in its iron ore MOC assessment process.

For offers, volumes differing from 170,000-190,000 mt and above the 50,000 mt minimum volume specification for CFR China PBF fines may be considered for publication and normalized on a case-by-case basis, using differentials based on prevailing market conditions.

Other methodology specifications remain unchanged.

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 Dec. 1.

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.