Metals & Mining Theme, Ferrous
December 10, 2025
Platts clarifies approach to CFR China iron ore lump outright price assessment
Platts, part of S&P Global Energy, is clarifying its current approach to its assessment of the CFR China iron ore lump outright (IOCLS00) price and how that will evolve effective Jan. 2, 2026, when the Platts lump premium (IOCLP00) will be assessed over a 61% Fe fines strip reflecting updated IODEX specifications.
Prior to Jan. 2, 2026, Platts typically assesses the daily iron ore lump outright price by taking into account the 62% Fe forward iron ore fines strip, which is a proxy value calculated by taking the average of the underlying fines derivatives covering the 43 days that correspond to the 14-56 day forward timing specification, and the lump premium on a dry metric ton unit basis using the following formula:
- Lump outright price = 62% Fe iron ore fines strip + (Lump Premium * 62)
From Nov. 12 to Dec. 31, 2025, where parts of the strip include dates in 2026, for which derivatives are traded on a 61% Fe basis, Platts has been converting them to a 62% Fe basis using the 62/61% Fe IODEX Basis Spread (FIOCS00), so that the entirety of the forward fines strip used in the assessment of the lump premium remains on a 62% Fe basis before 2026. This approach was communicated to the market in an Oct. 14 subscriber note available here: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/101425-platts-clarifies-iron-ore-lump-premium-assessment-approach-leading-up-to-jan-2-2026
Effective Jan. 2, 2026, when the lump premium will be assessed over a 61% Fe fines strip, the lump outright price will reflect the following formula:
- Lump outright price = (61% Fe iron ore fines strip + (Lump Premium * 61)) / 61 * 62, where the multiplication by 62 reflects the basis Fe specification of Platts lump outright assessment.
Information reported on a fixed-price basis will also be considered for assessment purposes, with normalizations toward Platts basis specifications.
The assessment of the lump premium on the basis of the forward fines strip has been an approach that has been in place since 2020, communicated in a Jan. 2, 2020 subscriber note available here:
To provide the market with greater clarity and informational transparency, Platts will be publishing the value of the fines strip (average of the 14-56 day delivery window) used in its lump outright price assessment in its daily lump premium rationale from Dec. 15, 2025.
Platts first proposed to update the quality specifications of its iron ore lump assessments in a June 10 subscriber note available here:
Platts communicated that it will assess the CFR China lump premium over a strip of 61% Fe iron ore fines, updated from the 62% Fe fines strip currently, in a July 1 subscriber note available here:
Platts clarified its iron ore lump premium assessment approach leading up to Jan. 2, 2026 in an Oct. 14 subscriber note available here:
Platts iron ore assessments are published in SBB Steel Markets Daily, Steel Price Report, World Steel Review, Steel Raw Materials Monthly and Global Market Outlook, on the real-time Steel Raw Materials Alert and in the Platts price database.
Please send feedback, comments and questions to iodex@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.