S&P Global Platts is clarifying the guidelines for its Market on Close (MOC) assessment process for iron ore in Asia, including its benchmark IODEX assessments.
The guidelines are aimed at bringing greater clarity to the assessment process.
Besides information published in the MOC, Platts editors also engage directly with producers, consumers, traders, brokers and shippers to gather price information.
Platts will publish bids, offers and interest to trade from approved participants in the Iron Ore MOC process in line with the following editorial standards and guidelines.
For more information on the counterparty review process, please visit https://www.platts.com/market-on-close.
Entities that wish to report bids or offers in the MOC should contact firstname.lastname@example.org
Timing and IncrementsAs part of the MOC process, buyers and sellers must submit any bids or offers with complete information to Platts editors by phone, instant-message or email before 5:00 pm Singapore time (0900 GMT).
Bids and offers can then only be raised or lowered in set increments defined in the iron ore MOC timing and increment guidelines available at https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/metals/iron-ore-moc-timing-and-increment-guidelines.
Counterparties can improve the price of their published bids and offers by up to 25 cents/dmt at a minimum interval of every 5 minutes for iron ore fines and pellets.
Price adjustments must be at least 5 cents/dmt. If the bid or offer is index-linked, the maximum incremental change per 5 minutes is 10 cents/dmt.
Counterparties can improve the price of their published bids and offers by up to $0.005/dmtu at a minimum interval of every 5 minutes for lumps.
Price adjustment must be at least $0.001/dmtu for iron ore lump.
Counterparties can improve the price of their published bids and offers by up to Yuan 2.5/dmt at a minimum interval of every 2 minutes for port stocks.
Price adjustment must be at least one yuan for port stocks.
No price changes are allowed during the final 5 minutes of the MOC that concludes at 5:30 pm Singapore time (0930 GMT) for fines, lumps and pellets and during the final 2 minutes of the MOC for port stocks.
Buyers and sellers may withdraw their bids or offers at any time during the MOC by communicating the same to Platts editors.
Counterparties must clearly communicate their interest to trade a published bid or offer to Platts editors.
Platts MOC guidelines are a key component of its assessment methodology, essential to an orderly and transparent price assessment process.
Iron Ore Timing Guidelines
|Product||Bids/Offers due for entry||Cut-off price change||Time to repeat order||No more price changes||Market Closes|
|Medium Grade Fines (IODEX)||16:59:59||17:24:59||60 seconds||17:25:00||17:29:59|
|Low Grade Fines (58%)||16:59:59||17:24:59||60 seconds||17:25:00||17:29:59|
|High Grade Fines (65%)||16:59:59||17:24:59||60 seconds||17:25:00||17:29:59|
|Medium Grade Fines (E.C. IOPEX)||16:59:59||17:27:59||30 seconds||17:28:00||17:29:59|
|Medium Grade Fines (N.C. IOPEX)||16:59:59||17:27:59||30 seconds||17:28:00||17:29:59|
Iron Ore Increment Guidelines
|Product||Min||Max||Min||Max||Time to repeat order||Unit||Frequency|
|Medium Grade Fines (IODEX)||50,000||no max||5||25*||60 seconds||cents/dmt||per 5 minutes|
|Low Grade Fines (58%)||50,000||no max||5||25*||60 seconds||cents/dmt||per 5 minutes|
|High Grade Fines (65%)||50,000||no max||5||25*||60 seconds||cents/dmt||per 5 minutes|
|Lump||50,000||no max||0.001||0.005||60 seconds||$/dmtu||per 5 minutes|
|Pellet||35,000||no max||5||25||60 seconds||cents/dmt||per 5 minutes|
|Medium Grade Fines (E.C. IOPEX)||5,000||50,000||1||2.5||30 seconds||RMB/wmt||per 2 minutes|
|Medium Grade Fines (N.C. IOPEX)||5,000||50,000||1||2.5||30 seconds||RMB/wmt||per 2 minutes|
|* If index-linked (spread), maximum increment is 10 cents per 5 minutes|
Volume, Location and Laycan
|Brand||Volume (mt)||Bid Loading Laycan||Offer Loading Laycan|
|MAC Fines||80,000-90,000||minimum 15 days||standard 10 day laycan|
|Newman Fines||80,000-90,000||minimum 15 days||standard 10 day laycan|
|Jimblebar Fines||80,000-90,000||minimum 15 days||standard 10 day laycan|
|PB Fines||80,000-90,000||minimum 15 days||standard 10 day laycan|
|PB Fines||170,000-190,000||minimum 15 days||standard 10 day laycan|
|BRBF Fines||170,000||minimum 30 days||standard 10 day laycan|
|IOCJ Fines||170,000||minimum 20 days||standard 10 day laycan|
|Newman Lumps||80,000-90,000||minimum 15 days||standard 10 day laycan|
|PB Lumps||80,000-90,000||minimum 15 days||standard 10 day laycan|
|Pellets||minimum 35,000||minimum 30 days||standard 10 day laycan|
Deals, bids and offers to contain information onSeller, Buyer, Delivery Terms (Port location and Incoterm), Delivery Window, Quantity (Metric Tonnes), Quality (in Fe, SiO2, Al2O3, S, P), Price on fixed or floating price basis (in $/dmt or $/dmtu or RMB/dmt), Credit Terms and Other Terms.
Example FormatIron Ore MOC: 62%-Fe Australian Pilbara Blend fines – Buyer A offers at $74.95/dmt CFR Qingdao, 170,000 mt, loadport laycan Jan 30-Feb 08, 2019
GT&CsCounterparties are expected to perform on trades reported in the MOC based on typical GT&Cs and credit terms that have been applied and accepted by both counterparties in the open market.
If an offer is lifted by a buyer during the Platts MOC process, Platts would expect typical GT&Cs and credit terms between both parties to be applicable, even where the GT&Cs and credit terms stated in the originally published offer may differ, if the companies have not conventionally performed on the published terms.
For more information on Platts Iron Ore benchmark prices and how they are assessed, please visit: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/metals/iron-ore-methodology
Information on Iron Ore MOC bids, offers and trades and can be submitted to Platts editors via IODEX@spglobal.com.
All information published in the MOC is freely available via https://iron-ore-moc.plattslabs.io/news.
All Iron Ore data points collected and published by Platts, including non-MOC data, can be found on Page 700 of Platts Metal Alert (PMA).
Please send any feedback or questions to IODEX@spglobal.com and email@example.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.