Platts consults on Atlantic iron ore blast furnace pellet premium assessments

Platts, part of S&P Global Energy, is opening a formal consultation with market participants on its methodology for Atlantic iron ore blast furnace pellet premium assessments.

Platts publishes monthly assessments for the Atlantic iron ore blast furnace pellet contract price on an FOB Brazil basis, as a premium over the quality-adjusted Platts IODEX CFR China benchmark (IOBFP00) and the Platts iron ore fines 65% Fe CFR China assessment (FIOTC03).

The assessments represent prevailing industry-settled quarterly contract settlements for iron ore blast furnace pellets sold under term contracts to steel mills, primarily in Europe. In the event of no confirmed settlements covering loading for the month the assessment is published, Platts considers provisional contract pricing and related market data.

Platts invites feedback on the current methodology, including but not limited to the following:

• Assessment frequency: Whether the current monthly frequency is appropriate, or should the assessments instead be published on a quarterly or weekly cadence.
• Increased spot activity: If a change in methodology is needed to reflect increased spot activity observed in the wider market. The assessments currently reflect contractual settlements.
• Volumes: Minimum contractual volumes between a pair of producer and buyer to be considered as meeting an industry settlement.
• Quality: Variation in quality, if any, of Atlantic blast furnace pellets typically pricing on a 65% Fe fines basis in relation to Platts reflected specifications (65% Fe, 3% Silica, 0.5% Alumina, 275 Cold Crushing Strength, Low Temperature Disintegration plus 6.3 millimeters, 80%)

Full specifications for the Platts Atlantic iron ore blast furnace pellet assessments can be found in the Global Iron Ore specifications guide, available here.

The assessments are published in SBB Steel Markets Daily and on fixed pages STL1160 and PMA1160.

Please send any questions, comments or feedback by April 24 to EMEAMetalsTeam@spglobal.com and 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.