Metals & Mining, Ferrous
May 15, 2026
Platts proposes changing the Atlantic BF pellet premium (basis IODEX) to calculated value July 1
Platts, part of S&P Global Energy, proposes changing the Atlantic iron ore blast furnace pellet contract price premium assessment to a calculated value, effective July 1, 2026.
From July 1, the Platts Atlantic iron ore blast furnace pellet premium (basis IODEX) (IOBFP00) would be published as a monthly calculated value. This value would be first derived by calculating the fixed price of the Atlantic iron ore blast furnace pellet on an FOB Brazil basis by adding the 65% Fe FOB Brazil netback [IOFBN03] to the 65% Fe premium [FIOTC03]. Next, the 62% Fe benchmark (IODEX Netback FOB Brazil (IONBB03)) will be deducted, and the resulting differential adjusted for quality using the 61%/62% Fe transitional basis spread (FIOTB03), followed by deducting the iron ore differential per 1% Fe (IOMGD03) three times to derive a premium basis 62%.
The formula is as follows:
Calculated Atlantic blast furnace pellet premium (over 62% Fe) that is = 65% Fe FOB Brazil Netback MAvg (IOFBN03) + 65% Fe Premium (FIOTC03) - IODEX Netback FOB Brazil MAvg (IONBB03) - 61%/62% Fe Transitional Basis Spread MAvg (FIOTB03) - 3 * Iron Ore Fe Differential per 1% (60%-63.5% Fe Fines) (IOMGD03)
The proposal affects the following assessment:
| Symbol | Description | Frequency | Quality | Dimensions | Incoterm | Location | UOM |
| IOBFP00 | Atlantic Iron Ore Blast Furnace Pellet Contract Price Premium (basis IODEX) | Monthly | 65% Fe blast furnace pellet: silica 3%, alumina 0.5%, 275 Cold Crushing Strength (CCS), Low Temperature Disintegration +6.3 mm, 80% | Sizing below 6.3 mm <2.5%, over 9 mm >94% | FOB |
Brazil, Atlantic |
$/dmt |
This proposal follows feedback received following a market consultation opened earlier on March 13 (https://www.spglobal.com/energy/en/pricing-benchmarks/our-methodology/subscriber-notes/031326-platts-consults-on-atlantic-iron-ore-blast-furnace-pellet-premium-assessments), indicating an overall shift in pricing and valuation of Atlantic pellet premiums on a 65% Fe fines basis compared with medium-grade fines.
The monthly Platts Atlantic iron ore blast furnace pellet premium (basis 65% Fe fines) (FIOTC03) remains unchanged, representing prevailing industry-settled contracts for Atlantic iron ore blast furnace pellets.
The Platts Atlantic iron ore blast furnace pellet premium (basis 65% Fe fines) assessment was launched Jan. 2, with more details available here. Detailed specifications can be found in the Platts Global Iron Ore Specification Guide, available here.
The assessments are published in SBB Steel Markets Daily and on fixed pages STL1160 and PMA1160.
Platts invites feedback, comments and questions on this proposal to EMEAMetalsTeam@spglobal.com and pricegroup@spglobal.com by May 29.
For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing.
Platts will consider all comments received and will make those not marked as confidential available upon request.