Platts proposes to launch 65% Fe CFR China iron ore forward curve, update spot spec

As part of a broad review of its coverage of iron ore fines with more than 63.5% Fe, S&P Global Platts is proposing to update the specifications of its 65% Fe CFR China iron ore fines spot assessment and to start assessing a respective forward curve.

SPECIFICATION CHANGE: Platts proposes to amend the specifications of the 65% Fe iron ore fines assessment (IOPRM00) to 1.4% alumina, 2% silica and 0.065% phosphorus, from 1% alumina, 3.5% silica and 0.075% phosphorus currently, effective Jan. 4, 2021.

The proposal aims to bring this assessment in line with the latest specifications seen in the high grade fines segment of the market. The affected assessment is published on the fixed page 1105 of the real-time Platts Steel Alert and Platts Metals Alert, on page 16 of SBB Steel Markets Daily, in Platts Market Center and in the Platts price database.

FORWARD CURVE: Platts proposes to launch a new daily assessment of 65% Fe Fines CFR China Derivative Forward Curve, on the back of growing liquidity in this segment of the iron ore derivatives market, effective Nov. 2, 2020. The assessments would reflect the daily values at 5:30 pm Singapore time for 65% Fe iron ore fines derivative contracts, on a CFR China basis, normalized to a minimum volume of 5,000 mt, in line with the standard industry practice.

Platts would publish derivatives assessments for current month (Mo0), month one (Mo01), second month (Mo02) and third month (Mo03) strips, which roll on the first day of the month. Platts would collect trade information from active market participants and forward curves from brokers.

Derivative bids/offers and trades would continue to be published in realtime throughout the day on the Platts electronic information service and Platts Metals Alert (PMA), along with information in the physical market. The assessments would be published on the fixed page 1113 of the real-time Platts Steel Alert and Platts Metals Alert, on page 17 of SBB Steel Markets Daily, in Platts Market Center and in the Platts price database.

Please send all comments, feedback and questions to IODEX and pricegroup by August 20, 2020. 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.