S&P Global defends right to publish discount prices after Fortescue claim

London — S&P Global Inc (SPGI) has launched a court action in the US defending its right to publish certain iron ore pricing information in response to a legal challenge by Australian miner Fortescue Metals Group, according to filings.

The company -- owner of price reporting agency S&P Global Platts -- on April 29 filed for an injunction in the US District Court for the Southern District of New York against a court order obtained by Fortescue Metals Group (FMG) and its wholly owned subsidiary Chichester in the High Court of England and Wales on April 24 forbidding SPGI to publish information on FMG iron ore price discounts. The data is generally considered relevant to market transparency.

The dispute is understood to arise out of information published by SBB Steel Markets Daily -- an editorial product produced by Platts -- regarding price discounts offered by FMG to Chinese customers in March and April.

Prices for iron ore, classed by some analysts as 2019's best-performing commodity, have been volatile since Vale's Brumadinho dam accident in January 2019 led to production curbs and a five-year price peak. This has been followed by weather- and COVID-19-related export disruptions from both Brazil and Australia in recent weeks and months.

Right to publish

UK-based Argus Media was also prohibited by the UK High Court ruling from publishing similar information.

In its complaint filing to the US court, SPGI said it was bringing its action "to vindicate its First Amendment right to continue to gather and publish financial news and information of public concern, notwithstanding the preference of defendant Fortescue Metals Group (FMG) to evade press coverage of its business activities."

Platts said in a statement that it does not comment on ongoing litigation.

"However S&P Global Platts, like other price reporting agencies, places importance on its right to independently report market information obtained through legitimate journalistic practices, which increases transparency across commodity markets," a spokesman said.

FMG -- which has grown rapidly in recent years to become the world's fourth-biggest iron ore miner -- did not respond to Platts' emailed requests for comment outside of Australian working hours.

Fortescue Chief Executive Elizabeth Gaines told "The Australian" on Thursday she was not able to comment outside of the court filings, but said that the matter was about the confidentiality of Fortescue's information.

Argus Media said in a statement sent to Platts Thursday that it "is vigorously fighting this application. As an independent publisher of news and information about commodities, Argus journalists shed light on opaque markets by speaking to a range of industry sources. Independent, objective market reporting which creates commodity price transparency is an essential service and very much in the public interest."