Our price assessments reflect the repeatable, tradable price of iron ore lump cargoes that are traded in the current market. Helping miners, steelmakers and traders price longer-term contracts, understand market data and aid spot transactions.
The iron ore lump (i.e. sized ore) premium assessment specifications reflect the type of materials that have the most fluidity and are traded in the spot market, such as Pilbara Blend and Newman Blend lump. Lump iron ore material performs better in blast furnaces and can command a premium over (iron) fines cargoes, as it allows air to circulate around the raw materials (except for certain non-screened brands). While fines material has to undergo the process of sintering before use.Since Platts started spot lump premium assessments in May 2013 there has been an increase in transparency among industry participants, with more openness in sharing of transactional data and positions, and trades increasingly being concluded using our price assessments.
Our spot iron ore lump premium assessment is based on the premium that lump cargo commands over the price of fines and is defined by the Platts 62% Fe Iron Ore Index (IODEX). This premium is assessed on a US dollar per dry metric ton unit (CFR North China basis).Most commonly, we see spot iron ore lump transactions being concluded as a floating price premium over the IODEX assessments. However, flat price trades, bids and offers are also observed from time to time, and will be converted to a premium on a dmtu basis. The iron ore price assessments reflect spot market value as of the assessment timestamp of 0930 GMT and are published every Wednesday. Click here to receive price assessments delivered straight to your inbox each week.
Our editors publish confirmed trades, bids, offers and expressions of interest to trade spot lump cargoes during the Platts Market on Close assessment process, thereby always giving the market an open opportunity to participate in the assessment process, helping to prove market value and provide feedback. The information is summarized in a weekly commentary and rationale, highlighting specific bids, offers, trades or exclusions that have been taken into account.All this information is summarized in our market reports and is published on our real-time information service, Platts Metals Alert.
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