Platts introduces MOC timing, increment guidelines for iron ore pellet feed

Platts, part of S&P Global Commodity Insights, has introduced timing and increment guidelines for its iron ore pellet feed Market on Close assessment process, effective Jan. 27, 2025, to align with existing MOC practices for Asia iron ore fines, lump and pellet.

The timing and increment guidelines apply to all firm bids or offers reported directly to Platts for publication in the iron ore pellet feed MOC assessment process.

Timing and increment guidelines are a key component of Platts assessment methodology, essential to an orderly and transparent publishing process.

When determining a final market assessment, Platts gives the highest priority to fully verifiable and transparent market information from entities that have been reviewed for participation in the MOC process.

Platts has also introduced volume and laycan guidelines to specify the minimum or standard volume and loading laycan required for bids and offers published in the pellet feed MOC. Offers for seaborne iron ore pellet feed need to have a standard 10-day laycan and be of a minimum volume of 50,000 mt, while bids need to have a minimum 20-day laycan and a volume of 170,000 mt. Sellers will need to narrow the laycan to 10 days at the time they lift a bid.

MOC timing and increment guidelines

To ensure sufficient time for all market information to be tested, buyers and sellers must submit any firm bids or offers with complete information to Platts market reporters by phone, instant messenger or email before 5 pm Singapore time.

Counterparties can improve the price of their published bids or offers every five minutes, by a minimum increment of 5 cents/dmt and a maximum increment of 25 cents/dmt.

No price changes are allowed in the final five minutes of the MOC, which concludes at 5:30 pm Singapore time.

Buyers and sellers may withdraw their bids or offers at any time during the MOC.

Counterparties must clearly communicate their expression of interest to trade a published bid or offer to Platts price reporters.

Platts may adjust its timing and increment guidelines in the event of market volatility or a disruptive event.

The timing guidelines are listed in the table below:

The increment guidelines are listed in the table below:

Platts initially proposed the guidelines in a subscriber note published Dec 23 , 2024, available at: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/122324-platts-proposes-to-introduce-moc-timing-increments-guidelines-for-iron-ore-pellet-feed

Following market feedback, Platts communicated its decision to implement the guidelines in a subscriber note published Jan. 16. 2025, available at:

https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/011625-platts-to-introduce-moc-timing-increments-guidelines-for-iron-ore-pellet-feed

Iron ore pellet feed specifications

The guidelines apply to firm bids or offers adhering to Platts specifications for its CFR Middle East iron ore pellet feed assessment, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/metals/iron-ore-methodology.

MOC participation review

Platts applies objective criteria to review entities that wish to participate in the reviewed MOC process and monitors all MOC participants to ensure that input data provided by these entities reflects typical market trading practices and standards.

For more information on the counterparty review process, please visit https://www.spglobal.com/commodityinsights/en/our-methodologies/market-on-close.

Entities that wish to participate in the MOC can contact market_integrity_review@spglobal.com.

The Metals Timing and Increment Guidelines can be found here: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/metals_timing_increment_guidelines.pdf.

Please send all comments, feedback 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.