Following consultation, Platts, part of S&P Global Commodity Insights, has changed 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 revised normalization threshold 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 this 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 Market on Close (MOC) assessment process are expected to clearly state in offers if the documentation presentation period is longer than 31 days.
The previous normalization threshold applied to bids, offers, and trades with a document presentation period was longer than 35 days.
The change was initially proposed on 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
The decision to implement the proposed change was communicated in a subscriber note published on Oct. 20:
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.
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