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SUBSCRIBER NOTE: Platts clarifies MOC guidelines for Iron Ore assessments

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 pricegroup@spglobal.com

Timing and Increments

As 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

ProductBids/Offers due for entryCut-off price changeTime to repeat orderNo more price changesMarket Closes
Medium Grade Fines (IODEX)16:59:5917:24:5960 seconds17:25:0017:29:59
Low Grade Fines (58%)16:59:5917:24:5960 seconds17:25:0017:29:59
High Grade Fines (65%)16:59:5917:24:5960 seconds17:25:0017:29:59
Lump16:59:5917:24:5960 seconds17:25:0017:29:59
Pellet16:59:5917:24:5960 seconds17:25:0017:29:59
Medium Grade Fines (E.C. IOPEX)16:59:5917:27:5930 seconds17:28:0017:29:59
Medium Grade Fines (N.C. IOPEX)16:59:5917:27:5930 seconds17:28:0017:29:59


Iron Ore Increment Guidelines

Volume (mt)Increment
ProductMinMaxMinMaxTime to repeat orderUnitFrequency
Medium Grade Fines (IODEX)50,000no max525*60 secondscents/dmtper 5 minutes
Low Grade Fines (58%)50,000no max525*60 secondscents/dmtper 5 minutes
High Grade Fines (65%)50,000no max525*60 secondscents/dmtper 5 minutes
Lump50,000no max0.0010.00560 seconds$/dmtuper 5 minutes
Pellet35,000no max52560 secondscents/dmtper 5 minutes
Medium Grade Fines (E.C. IOPEX)5,00050,00012.530 secondsRMB/wmtper 2 minutes
Medium Grade Fines (N.C. IOPEX)5,00050,00012.530 secondsRMB/wmtper 2 minutes
* If index-linked (spread), maximum increment is 10 cents per 5 minutes

Volume, Location and Laycan

BrandVolume (mt)Bid Loading LaycanOffer Loading Laycan
MAC Fines80,000-90,000minimum 15 daysstandard 10 day laycan
Newman Fines80,000-90,000minimum 15 daysstandard 10 day laycan
Jimblebar Fines80,000-90,000minimum 15 daysstandard 10 day laycan
PB Fines80,000-90,000minimum 15 daysstandard 10 day laycan
PB Fines170,000-190,000minimum 15 daysstandard 10 day laycan
BRBF Fines170,000minimum 30 daysstandard 10 day laycan
IOCJ Fines170,000minimum 20 daysstandard 10 day laycan
Newman Lumps80,000-90,000minimum 15 daysstandard 10 day laycan
PB Lumps80,000-90,000minimum 15 daysstandard 10 day laycan
Pelletsminimum 35,000minimum 30 daysstandard 10 day laycan
Port Stocks5,000-50,000NANA

Deals, bids and offers to contain information on

Seller, 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 Format

Iron 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&Cs

Counterparties 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 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.