Metals & Mining Theme, Ferrous

September 23, 2024

Platts launches Indian domestic direct reduced iron price assessment

Platts, part of S&P Global Commodity Insights, has launched a daily pellet-based Indian domestic direct reduced iron spot price assessment on an ex-works Raipur, Chhattisgarh basis, effective Sept. 23.

India is one of the largest producers of DRI in the world, producing about 51 million metric tons/year of this material, according to the International Iron Metallics Association. DRI is used as a raw material for steelmaking, with its production volumes growing alongside an increase of steelmaking capacity in India. The assessment seeks to reflect spot prices in this increasingly important market, as DRI production transitions to using alternative, lower carbon intensity fuels.

The assessment in Rupee/mt and currency conversion in $/mt have the following specifications:

Assessments Type Daily symbol Monthly average Quality Quantity Dimensions Incoterms Location Timing Payment UOM
Platts Direct Reduced Iron Ex-Works Raipur Assessment SIMAA00 SIMAA03 Pellet-based, 80% Fe, <0.2% Carbon, <0.04% Sulfur, <0.07% Phosphorus 100 t to 5,000 t 5-18mm Ex-Works Raipur, Chhattisgarh Delivery up to 1 week Cash in advance, excludes GST Rupee/mt
Platts Direct Reduced Iron Ex-Works Raipur Calculation SIMAB00 SIMAB03 Pellet-based, 80% Fe, <0.2% Carbon, <0.04% Sulfur, <0.07% Phosphorus 100 t to 5,000 t 5-18mm Ex-Works Raipur, Chhattisgarh Delivery up to 1 week Cash in advance, excludes GST $/mt

Platts first proposed the launch on Aug. 19, in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/081924-platts-proposes-to-launch-indian-domestic-direct-reduced-iron-price-assessment(opens in a new tab)

Following market feedback, Platts communicated its decision to proceed with the proposed launch on Sept.18: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/091824-platts-to-launch-indian-domestic-direct-reduced-iron-price-assessment(opens in a new tab)

The assessment reflects a 5:30 pm Singapore timestamp and follows the Singapore holiday calendar.

Platts assessments consider market information reported to Platts and published through the day, including firm bids and offers, transactions and indications, as well as any other information deemed relevant to the assessment process.

A full description of the Platts assessments methodology can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Platts-Assessments-Methodology-Guide.pdf(opens in a new tab)

The assessment, its $/mt conversion and associated monthly averages are published on the real-time Platts Metals Alert and Platts Steel Alert, in SBB Steel Markets Daily and in the Platts price database under the symbols listed above. The assessment is included on pages PMA1605 and STL1605, and the monthly average on pages PMA1606 and STL1606.

The first monthly average calculations will update on Nov. 1, reflecting the average of daily assessments published throughout October.

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.