Platts Methodology Guide
[STEEL ]
METHODOLOGY AND SPECIFICATIONS GUIDE
Iron Ore
(Latest Update: May 2013)
PLatts MethodoLogy gUides assessMent PrinciPLes
ConvergenCe with market value transaCtion-based normalization / effeCtive priCing time sensitive assessment transparenCy market on Close verifiCation of data spreads data Codes
2 2
2 2 2 2 2 3 3 3 3
iron ore assessMents iodbz00 iodeX 62% fe Cfr China iodsC00 io fines 63.5/63% fe Cfr China ioprm00 io fines 65% fe Cfr China iodfe00 io fines fe 58% Cfr China ionC520 io fines fe 52% Cfr China ioClp00 io spot lump premium 62.5% Cfr China (weekly) ioplC00 io australia lump premium ContraCt priCe Cfr China (Quarterly) freight assessments & fob netbaCks freight differentials for ports in China iron ore paper swaps
5
5 5 5 6 6 6 6 7 7 7
generaL terMs and conditions gt&Cs time of assessment Quality priCe units Credit/payment terms Quantity / order size timing embedded options loading / delivery loCation freight differentials
3
3 3 3 4 4 4 4 4 4 4
MetaLLUrgicaL coaL assessMents aPPendix i: overview of Market on cLose assessMent market on Close: platts assessment proCess
7
8
8
aPPendix ii: Market on cLose ProcedUres bids/offers eXeCutability performanCe inCrementability repeatability nomination proCedures
8
8 8 9 9 9 9
norMaLization ProcedUres
Quality Quantity / order size timing
4
4 4 5
METHODOLOGY AND SPECIFICATIONS GUIDE
IRON ORE
Platts methodology guides platts publishes a methodology guide for each of the markets in which it produces price assessments. the guides are intended to provide market participants with general and specific criteria that underpin platts assessments. methodology guides are updated periodically to reflect changes in the market and in trading practice. platts engages with market participants and values feedback on any aspect of its assessment methodology. platts recognizes that markets are constantly evolving and it seeks to ensure that its assessments
METHODOLOGY AND SPECIFICATIONS GUIDE
Iron Ore
(Latest Update: May 2013)
PLatts MethodoLogy gUides assessMent PrinciPLes
ConvergenCe with market value transaCtion-based normalization / effeCtive priCing time sensitive assessment transparenCy market on Close verifiCation of data spreads data Codes
2 2
2 2 2 2 2 3 3 3 3
iron ore assessMents iodbz00 iodeX 62% fe Cfr China iodsC00 io fines 63.5/63% fe Cfr China ioprm00 io fines 65% fe Cfr China iodfe00 io fines fe 58% Cfr China ionC520 io fines fe 52% Cfr China ioClp00 io spot lump premium 62.5% Cfr China (weekly) ioplC00 io australia lump premium ContraCt priCe Cfr China (Quarterly) freight assessments & fob netbaCks freight differentials for ports in China iron ore paper swaps
5
5 5 5 6 6 6 6 7 7 7
generaL terMs and conditions gt&Cs time of assessment Quality priCe units Credit/payment terms Quantity / order size timing embedded options loading / delivery loCation freight differentials
3
3 3 3 4 4 4 4 4 4 4
MetaLLUrgicaL coaL assessMents aPPendix i: overview of Market on cLose assessMent market on Close: platts assessment proCess
7
8
8
aPPendix ii: Market on cLose ProcedUres bids/offers eXeCutability performanCe inCrementability repeatability nomination proCedures
8
8 8 9 9 9 9
norMaLization ProcedUres
Quality Quantity / order size timing
4
4 4 5
METHODOLOGY AND SPECIFICATIONS GUIDE
IRON ORE
Platts methodology guides platts publishes a methodology guide for each of the markets in which it produces price assessments. the guides are intended to provide market participants with general and specific criteria that underpin platts assessments. methodology guides are updated periodically to reflect changes in the market and in trading practice. platts engages with market participants and values feedback on any aspect of its assessment methodology. platts recognizes that markets are constantly evolving and it seeks to ensure that its assessments