Platts proposes to discontinue the Atlantic BF pellet premium (basis IODEX) effective Jan 3, 2028

Platts, part of S&P Global Energy, has updated its proposal to change its Atlantic iron ore blast furnace pellet contract price premium assessment (basis IODEX) to a calculation and instead proposes to discontinue the assessment (IOBFP00) effective Jan. 3, 2028.

The amended proposal comes as market feedback has not broadly supported switching to a calculation and concerns around existing contract exposure through part of 2027.

However, market feedback has also indicated the need to coalesce around one pellet premium price assessment basis 65% Fe fines.

An extended period of running the existing contract premium assessment (basis IODEX) alongside the contract premium assessment (basis 65% Fe fines) through to the end of 2027 provides market participants with an opportunity to evaluate how each trends over a full calendar year, in line with feedback received.

Platts has observed decreasing liquidity of the Atlantic BF pellet contract price premium assessment (basis IODEX), and fewer contracts heard settling basis IODEX, or over 62% Fe.

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 proposal affects the following assessment:

The Atlantic iron ore blast furnace pellet contract price premium assessment (basis IODEX), however, will continue to be assessed until Dec. 31, 2027, based on prevailing industry-settled contracts for Atlantic iron ore blast furnace pellets, to address the need for a physical market reference price for existing term contracts. In the event of no confirmed settlements covering loading for the month the assessment is published, Platts may consider provisional contract pricing and related market data, in line with established methodology.

Platts originally proposed to change the Atlantic iron ore BF pellet contract premium assessment (basis IODEX) to calculated value over 62% Fe, with more details available here.

The former proposal came following feedback received through a market consultation opened earlier on March 13, available here.

The feedback indicated an overall shift in pricing and valuation of Atlantic pellet premiums on a 65% Fe fines basis compared with medium-grade fines.

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 Dec. 31, 2026.

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.