Iron Ore

[STEEL ]
METHODOLOGY AND SPECIFICATIONS GUIDE
Iron Ore
(Latest update: May 2015)
INTRODUCTION
HOW THIS METHODOLOGY STATEMENT IS ORGANIZED
PART I: DATA QUALITY AND DATA SUBMISSION
WHAT TO REPORT
HOW TO REPORT
MOC DATA PUBLISHING PRINCIPLES
3
3
3
PART II: SECURITY AND CONFIDENTIALITY
PART III: CALCULATING INDEXES

AND MAKING ASSESSMENTS
MOC PRICE ASSESSMENT PRINCIPLES

NORMALIZATION PRICE ADJUSTMENT TECHNIQUES
PRIORITIZING DATA
ASSESSMENT CALCULATIONS
4
5
5
6
PART IV: PLATTS EDITORIAL STANDARDS
PART V: CORRECTIONS
PART VI: REQUESTS FOR CLARIFICATIONS OF DATA

AND COMPLAINTS
6
PART VII: DEFINITIONS OF THE TRADING LOCATIONS
FOR WHICH PLATTS PUBLISHES INDEXES OR
ASSESSMENTS 7
IRON ORE ASSESSMENTS
IRON ORE PAPER SWAPS
FREIGHT & NETBACKS
7
10
12
REVISION HISTORY
13
INTRODUCTION
Platts methodologies are designed to produce price assessments that are
representative of market value, and of the particular markets to which they
relate. Methodology documents describe the specifications for various
products reflected by Platts assessments and indexes, the processes and
standards Platts adheres to in collecting data, and the methods by which
Platts arrives at final assessment values for publication. These guides are
freely available on Platts website for public review.
Part I describes what goes into Platts indexes and price values,
including details on what data market participants are expected to
submit, the process for submitting data and criteria for timeliness
of market data submissions.
Part II describes any security and confidentiality practices that

Platts uses in handling and treating data, including the separation
between Platts price reporting and its news reporting.
Part III is a detailed account of how Platts collects bids, offers,

trades and other market data, and what Platts does with the data to
formulate its indexes and assessments. It includes descriptions of
the methods that Platts uses for reviewing data, and the methods
used to convert raw data into indexes and assessments, including the
procedures used to identify anomalous data. This section describes
how and when judgment is applied in this process, the basis upon
which transaction data may be excluded from a price assessment,
and the relative importance assigned to each criterion used in forming
the price assessment. This section describes the minimum amount
of transaction data required for a particular price assessment to be
published, and the criteria for determining which values are indexes,
and which are assessments, based on reported transactions and
other market information. Finally, this section describes how Platts
addresses assessment periods where one or more reporting entities
submit market data that constitute a significant proportion of the total
data upon which the assessment is based.
Platts discloses publicly the days of publication for its price assessments
and indexes, and the times during each trading day in which Platts
considers transactions in determining its assessments and index levels.
This schedule of publication is available in Platts methodology guides.
Where this schedule is disrupted by public holidays; a schedule of
services/publications affected is available at the following link: http://
www.platts.com/HolidayHome.
The dates of publication and the assessment periods are subject to
change in the event of outside circumstances that affect Platts ability to
adhere to its normal publication schedule. Such circumstances include
network outages, power failures, acts of terrorism and other situations
that result in an interruption in Platts operations at one or more of its
worldwide offices. In the event that any such circumstance occurs, Platts
will endeavor, whenever feasible, to communicate publicly any changes to
its publication schedule and assessment periods, with as much advance
notice as possible.
Part IV explains the process for verifying that published prices

comply with Platts standards.
Part V lays out the verification and correction process for revising
published prices and the criteria Platts uses to determine when it
publishes a correction.
All Platts methodologies reflect Platts commitment to maintaining best

practices in price reporting.
Platts methodologies have evolved to reflect changing market conditions
through time, and will continue to evolve as markets change. A revision
history, a cumulative summary of changes to this and future updates, is
included at the end of the methodology.
Part VI explains how users of Platts assessments and indexes can

contact Platts for clarification of data that has been published,
or to register a complaint. It also describes how to find out more
about Platts complaint policies.
Part VII is a list of detailed specifications for the trading locations

and products for which Platts publishes indexes or assessments
in this commodity. This section describes why specific units of
HOW THIS METHODOLOGY STATEMENT IS ORGANIZED

This description of methodology for indexes and assessments is divided
into seven major parts (I-VII) that parallel the entire process of producing
the end-of-day price values.
COPYRIGHT 2014 BY PLATTS, McGRAW HILL FINANCIAL
IRON ORE: MAY 2015
measurement are used, and what conversion factors are used to

move between units of measurement, where relevant.
PART I: DATA QUALITY AND DATA

SUBMISSION
Platts objective is to ensure that the submission of transactional
information and other data inputs that editors use as the basis for their
price assessments is of the highest quality. Ensuring that data used in
Platts assessments is of high quality is crucial to maintaining the integrity
of Platts various price assessment processes.
Platts encourages entities that submit any market data for consideration in
its assessment processes to submit all market data that they have which
may be relevant to the assessment being made. Platts aim is to determine
the full circumstances surrounding all reported transactional data, including
details of quality, specifications, order sizes, dimensions, lead times and any
locational and loading/delivery information. Platts uses that information to
determine a typical and repeatable market level for the commodity being
assessed.
Platts routinely, and as part of standard editorial practice, reviews the
companies participating in its price assessment processes. These reviews
ensure the suitability of data and information that are used to formulate
Platts end-of-day price assessments. These reviews are conducted
on a regular basis, and may take into consideration an array of issues
including, but not limited to, adherence to editorial guidelines, operational
and logistical issues, as well as counterparty acceptance.
The reviews are not designed to impede a companys ability to bilaterally
engage in market transactions; the objective at all times is to ensure the
integrity of published price assessments. Platts does not disclose the
nature or scope of routine reviews of data providers that participate in its
price assessment activities.
WHAT TO REPORT
Confirmed trades
Firm bids that are open to the marketplace as a whole, with

standard terms
Firm offers that are open to the marketplace as a whole, with

standard terms
Expressions of interest to trade with published bids and offers,

with standard terms
Indicative values, clearly described as such
Reported transactional activity heard across the market, clearly

described as such
Other data that may be relevant to Platts assessments, such as

supply/demand fundamentals and other factors affecting the price
of a particular commodity
HOW TO REPORT
Platts accepts information provided for publication in real-time across a
wide variety of media. The following reporting methods are accepted by
Platts editorial staff:
Commonly used Instant Messaging software
eWindow
Telephone
Email
Fax
MOC DATA PUBLISHING PRINCIPLES

Platts has progressively adopted its Market on Close (MOC) assessment
process to assess the value of iron ore. The MOC assessment process
establishes core standards for how data is collected and published, how
data is prioritized by value, and ultimately how data is analyzed in the
course of completing Platts assessments.
Transparency underpins Platts data publishing processes in markets.
Under Platts MOC guidelines for collecting and publishing data, Platts
publishes market information including but not limited to firm bids and
offers from named companies, expressions of interest to trade and
confirmed trades that are received from market participants throughout
the day.
This information is published in real-time, as it is received, on Platts
information service, Platts Metals Alert and IO eWindow. Platts publishes
all information received so that it can be fully tested by the market at
large. Information collected and published may include the identities of
buyers and sellers, confirmed prices, volumes, location, and stated trading
terms.
Platts assessments are designed to reflect repeatable market value at
the close of the assessment process. Platts tracks market price evolution
during the entire day, and publishes a wide range of data relating to
market value as it does so. All data that has been published through the
day is analyzed during the assessment process. Towards the close of the
day, Platts focuses its assessment process seeking to publish named firm
bids and offers, expressions of interest to trade and confirmed trades,
with all relevant details. Transparent data is prioritized in the assessment
process, because it is available to the entire market for testing.
Platts applies a survey assessment methodology where market conditions
do not support an MOC assessment environment. Platts collects a
wide variety of transactional and market information through a survey
of participants, which typically includes communicating with sources
via phone, email, and instant messaging, among other communication
methods. Although the survey assessment methodology is in many
respects similar to the MOC assessment methodology there are key
distinctions between the assessment approaches.
IRON ORE: MAY 2015
bids, offers, interest to trade, transactions that have been previously

concluded, and indications of value from participants in the market. Platts
seeks to collect, confirm and analyse as much information as possible
in survey markets, and encourages market participants to provide all
relevant information. Platts publishes credible information collected
that meets our methodological standards, typically through real-time
information services and with as much transparency as possible. This
information is considered when determining and completing a final
assessment.
All Platts market reporters are trained to analyse the data they receive
and to question sources to establish the fullest set of information
possible around price data. Reporters are trained to seek a wide variety
of information to test reported transactional activity, including the specific
price agreed, the counterparty to the trade, the point of origin and
destination for delivery of the commodity, the size of the transaction, any
physical quality commitments agreed as part of the trade, the terms and
conditions of a trade and when a trade was agreed.
Survey and MOC environments are linked. Survey assessment
environments are a common ground for future MOC assessment
environments, and Platts regularly reviews its survey environments to
determine which may be suited to an MOC approach. Similarly, MOC
environments are underpinned by data collected by surveying sources
throughout the day, to ensure that Platts is aware of market values as
the MOC process begins, and so that Platts has data to review when
considering information collected through MOC, particularly if an MOC
environment yields little or no data on a given day.
For analysis of the data, Platts survey methodologies will typically give
priority to data collected that is confirmed and published, and which is
most relevant to closing values in the markets covered.
In order to enable firm bids and firm offers that still stand at the close
of the assessment process have been fully tested in the market at large,
Platts launched an editorial window (eWindow) in March 2013, which
has clearly defined time cut-offs that apply when publishing firm bids
and firm offers in the MOC process. Time cut-offs for the submission and
subsequent publication of new bids and offers are applied so that MOC
participants cannot bid or offer late in the process, and to ensure that
every bid and offer published by Platts is logistically executable.
In such environments, Platts collects as much data as possible, including
Bids and offers published by Platts are considered to be firm until Platts is
informed otherwise, or until the close of the assessment process for the
day, whichever comes first. Platts will consider all firm bids and offers as
open to the market at large and executable unless informed otherwise by
the counterparty submitting the market information. If no communication
is made to Platts to withdraw or change the parameters of the bid or
offer it is assumed that it is available to the marketplace. Platts seeks
verification of any transaction originating from a bid or offer submitted for
inclusion in the Platts MOC process.
Platts editorial guidelines governing its assessment process require
it must consider only those transactions, bids or offers where market
participants perform under typical contractual terms. Platts accepts that
individual companies may have trading limits with counterparties and that
national legislation may prevent companies from dealing in materials of
certain origins. Such counterparty issues are dealt with on a case-by-case
basis. Platts tracks all circumstances surrounding trades reported during
its MOC assessment process, and any issues regarding performance.
Platts not only focuses on the performance of the transaction at the time
of trade, but also on any significant issues stemming from such trades,
including logistics and eventual delivery of the product. Post-deal tracking
can enable Platts to determine the actual performance of the participants
in the trade and the validity of their inputs. Platts therefore may request
documentary material to determine performance and validity.
Platts cannot make any guarantee in advance about how and whether
market information received and published but not fully adhering to its
defined methodology will be incorporated in its final assessments.
PART II: SECURITY AND CONFIDENTIALITY

Data is stored in a secure network, in accordance with Platts policies
and procedures. Platts iron ore assessments are produced in accordance
with Platts Market on Close assessment methodology. This means that
all data for use in Platts iron ore assessments may be published by Platts
editorial staff while assessing the value of the markets.
Platts does not have confidentiality agreements for information provided
for use in iron ore assessments.
PART III: CALCULATING INDEXES

AND MAKING ASSESSMENTS
The following section describes how Platts uses the specific volume,
concluded and reported transactions, bids, offers and any other market
information it has collected, in the manner described in section one, to
formulate its price assessments. Additionally, this section describes other
information, including the normalization of market data, assumptions and
extrapolations that are considered when making a final assessment.
MOC PRICE ASSESSMENT PRINCIPLES

As a publisher owned by McGraw Hill Financial, Platts places
independence and impartiality at the heart of its price assessments. Platts
has no financial interest in the price of the products or commodities on
which it reports. Platts overall objective is to reflect the transactable
value of the commodity assessed. Platts indices and assessments are
based on its own surveys of market participants completed by Platts
market reporters each day. Platts assessments are based on as broad a
cross-section of the market as possible, including distributors, traders,
producers, end-users and brokers.
All transactional data is factored equally for use in a particular
assessment, as long as such transactions are deemed repeatable and
within the established specifications for each product. Transactions are
not evaluated on a weighted basis.
IRON ORE: MAY 2015
provides a robust basis upon which to derive a reliable assessment of

market value.
Iron ore assessment timestamp

Asia: 5.30 pm Singapore
Platts is progressively adopting MOC methodology in order to provide
complete clarity over the precise point in time reflected in its market
assessments. Like the quality of iron ore, its delivery location, delivery
dates, contract terms, and the volume to be supplied, the time of
commercial activity is an important attribute considered in Platts price
assessments. The time that a bid or offer is shown to the market, or a
transaction concluded, is vitally important in understanding the market
value of the respective commodity, in the same way that the quality of
the iron ore, where it will be delivered and when it will be delivered are
important factors. By clearly reflecting value at a defined point in time
Platts would be able to properly reflect outright and spread values.
MOC guidelines are designed to avoid distortion of the final price
assessments by eliminating inputs that are not fully verifiable, and by
disregarding one-offs or unrepeatable transactions, or those that may
distort the true market level. Transactions between related parties are, for
instance, not considered in the assessment process.
Through the MOC assessment process, Platts considers market

information gathered throughout the normal trading day, and publishes
such information throughout the day. Platts analyzes all published
information in determining its final published price assessments.
Platts does not specify a minimum amount of transaction data, or a

transaction data threshold, for the publication of its price assessments.
Physical commodity markets vary in liquidity. Any particular market
analyzed on its own will typically demonstrate rising and falling levels of
transactional activity through time. Platts is committed to providing an
assessment of value for every market that it covers, equally well in times
of heightened or reduced liquidity.
Through the progressive adoption of the MOC assessment process, Platts

seeks to establish and publish the value of iron ore that prevails at the
close of the assessment process itself. Platts has aligned the timestamps
reflected in its assessments with what typically is a period of high
activity in the markets that Platts observes. The typical period of high
activity in iron ore markets tends to be in the afternoon in every major
trading location around the world. Platts believes that aligning its price
assessments to typical periods of greater market activity and liquidity
Platts seeks to receive market information from as broad a cross section

of the market as possible. If a very limited number of market-makers are
active in the market, or if a limited number submit data that constitutes
a significant proportion of the total data upon which the assessment is
based, Platts will continue to seek fully transparent and verifiable data
from the market at large and to apply Platts methodology principles of
transparency, repeatability and time sensitivity. Platts considers data
for assessment of any market where a single company provides more
than half of all available information to be one where such a company

provides a significant proportion of data. For consideration in the
assessment process Platts will seek to verify that the value reflects
broad market value.
NORMALIZATION PRICE ADJUSTMENT TECHNIQUES

Platts seeks to align the standard specifications for the iron ore
markets it assesses and the timestamps reflected in its assessments
with standard industry practice. However, physical commodity
markets are generally heterogeneous in nature not only can time of
transactional activity considered for inclusion in the price assessment
process vary through the day, other key attributes often vary from the
base standard reflected in Platts assessments for iron ore traded in
the market.
The quality of iron ore, delivery location, and other specific terms of trade
may be varied in the physical commodity markets assessed by Platts. This
is one reason among many why data collected from these markets may
not be simply averaged to produce a representative value.
Because of the complex nature of the physical markets, data typically
must be aligned with standard definitions to allow for a fully
representative final published assessment. Platts aligns data collected
through an analysis of the physical iron ore markets with its standard
assessment specifications through a process called normalization.
Normalization is an essential price adjustment technique applied by
Platts, to align reported market information to reflect the economic
relationship between specific reported activity and the base standard
reflected in Platts price assessments.
By surveying markets and observing the economic impact of variance
from the base standard reflected in Platts assessments, Platts regularly
normalizes disparate information from the diverse physical commodity
markets back to the standard reflected in Platts price assessments. This
is done by analyzing freight rates (for locational differences), quality
differentials (for quality differences), the movements of all markets
through time (for time differences) and other differentials associated with
the size of trades and delivery terms.
Normalization for time may be done by analyzing movement in a related

market observed through time, and that movement may provide a basis by
which to align market value of an earlier reported bid, offer or transaction
to market value at the MOC close. This alignment for time is essential
to ensure that Platts price assessments reflect the prevailing value of a
market at the close of the MOC process.
PRIORITIZING DATA
IRON ORE: MAY 2015
Firm bids and offers that are available to the entire market take
precedence over trades that have been concluded earlier in the
assessment process when establishing the value of the market,
particularly if bids are available at the close above previously traded
levels, or offers are available to the market below previously traded
levels. Value is a function of time.
Similarly, firms bids and offers that are available to the entire market take
precedence over transactional activity reported to Platts after the fact.
Platts assessment process considers firm bids, firm offers and

transactions that are transparent and open to any counterparty with the
proper financial and operational resources. Bids, offers or transactions
that are not transparent may not be considered in the assessment
process. Data from transactional activity occurring in eWindows, adhering
to our published methodology, would be considered of the highest quality
for assessment purposes.
When no bid, offer or transaction data exists, Platts may consider other
verifiable data reported and published through the day, including fully
and partially confirmed trades, notional trading values and other market
information as provided for publication. Under such circumstances,
Platts may also be able to observe direct market activity or the effect of
commonly traded commodities on illiquid markets via spread differentials
and/or shipping economics.
The level of each bid or offer should stand firm in the marketplace long
enough for any counterparty to hit the bid or lift the offer, otherwise the
bid or offer may be deemed non-executable. Platts may not consider bids,
offers or transactions that are the result of market gapping, i.e. changes
that are in excess of normal market practice.
Platts also analyzes the relationships between different products,

and factors these relationships into assessments for markets where
transactional data falls to low levels. Finally, Platts normalizes other
available data that may be relevant to the assessment during periods
when low amounts or no transactional data exists, including transactional
data from related markets, in the manner described above.
Transparency underpins Platts assessment process, just as it does Platts

data publishing processes, in the iron ore markets. When determining
a final market assessment, Platts gives the greatest priority to fully
verifiable and transparent market information. A firm bid or offer that has
been published by Platts in accord with its data publishing standards, and
which still stands open to the marketplace at the close of the assessment
process, will establish clear parameters for Platts final published
assessments. Platts will typically assess market value somewhere
between the best bid, and best offer, open to the market at the close
of the MOC process. This ensures that Platts assessments reflect the
transactable value of the commodities it is assessing at the close of the
market.
Completed, transparent transactions that are fully published by Platts
are important in helping establish where trading interest prevails in the
market, and may help determine where, in a bid/offer spread, Platts may
assess value for publication.
Platts MOC guidelines are designed to avoid any distortion of the

final price assessment and so inputs that are not verifiable tend to
be eliminated and one-off or unrepeatable transaction data may be
disregarded from the price assessment process.
Single transactions may be a reflection of market value. However, single
transactions need to be measured against the broad span of similar
transactions. Platts seeks to verify the repeatability of market value by
determining the level achieved is repeatable in the wider market.
A variant on this action is price gapping when bids are made too high
and offers are made too low through untested levels of price support
or resistance. Platts may not publish such bids and offers during the
MOC process. When transactions are concluded at levels that have not
been fully tested by the market because price changes have been non
incremental, Platts may determine that actual market value is somewhere
between the last incremental bid and the transaction at the gapped level.
ASSESSMENT CALCULATIONS
Platts publishes its assessments reflecting the currencies and units of
measurement in which the products typically trade.
In certain cases Platts converts its assessments to other currencies or
units of measurement to allow for ease of comparison or analysis in
regional markets. Such conversions are done using published exchange
rates and conversion factors.
Platts reporters follow specific methodology when exercising editorial
judgment during their assessment process. Platts editors apply judgment
when determining (1) whether information is suitable for publication, (2)
when normalizing data and (3) when determining where to assess final
value of market.
Judgment may be applied when analyzing transactional data to determine
if it meets Platts standards for publication; judgment may also be applied
when normalizing values to reflect differences in time, location, and other
trading terms when comparing transactional data to the base standard
reflected in Platts assessments.
All such judgment is subject to review by Platts editorial management
for adherence to the standards published in Platts methodologies. The
following section illustrates how these guidelines work when calculating
indexes and making assessments.
To ensure the assessments are as robust as possible, Platts editorial
systems are backed by a strong corporate structure that includes
managerial and compliance oversight. To ensure reporters follow Platts
methodological guidelines in a consistent manner, Platts ensures that
reporters are trained and regularly assessed in their own and each others
markets.
Application of professional judgment guidelines promotes consistency and
transparency in judgments and is systematically applied by Platts. Where
professional judgment is exercised, all information available is critically
analysed and synthesised. The various possibilities are critically analysed
and fully evaluated to reach a judgment. Platts manages and maintains
internal training guides for each of the different products assessed
which aim to assist assessors and ensure Platts price assessments are
produced consistently. Platts price assessments are reviewed prior to
publication and exercise of professional judgment is further discussed

and verified during this process. Finally, consistent with the concept of
proportionality, assessments that are referenced by derivatives contracts
are supported by assessment rational, including the application of
judgment, which is published together with the price assessment offering
full transparency to the market.
Reporters are trained to identify potentially anomalous data. We define
anomalous data as any information, including transactions, which is
inconsistent with or deviates from our methodology or standard market
conventions
Platts focuses primarily on assessing the value of iron ore trading in the
seaborne spot market. A spot price for a physical commodity is the value
at which a standard, repeatable transaction for merchantable material
takes place, or could take place in the open market at arms length. In iron
ore, Platts spot price assessments reflect the value at which transactions
take place, or could take place, at precisely the close of the MOC process.
Platts overall objective is to reflect the transactable value of the
commodity assessed. In cases where the apparent value of the commodity
includes extra optionalities, the intrinsic value of the commodity may be
masked. In such cases, Platts may use its editorial judgment to factor out
such extraneous elements from the value of the commodity, or it may
decide not to use the bid, offer or transaction in its assessment process.
Optionalities that may mask the value of the commodity include but are
not limited to loading or delivery options held by the buyer or seller,
volume option tolerances exercisable by the buyer or seller or quality
specifications.
PART IV: PLATTS EDITORIAL STANDARDS

All Platts employees must adhere to the McGraw Hill Financial Code
of Business Ethics (COBE), which has to be signed annually. The COBE
reflects McGraw Hill Financials commitment to integrity, honesty and
acting in good faith in all its dealings.
In addition, Platts requires that all employees attest annually that they do
not have any personal relationships or personal financial interests that
may influence or be perceived to influence or interfere with their ability to
perform their jobs in an objective, impartial and effective manner.
IRON ORE: MAY 2015
Market reporters and editors are required to ensure adherence to

published methodologies as well as internal standards that require
accurate records are kept in order to document their work.
Platts has a Quality & Risk Management (QRM) function that is
independent of the editorial group. QRM is responsible for ensuring
the quality and adherence to Platts policies, standards, processes and
procedures. The QRM team conducts regular assessments of editorial
operations, including checks for adherence to published methodologies.
McGraw Hill Financials internal auditor, an independent group that
reports directly to the parent companys board of directors, reviews the
Platts risk assessment programs.
PART V: CORRECTIONS
Platts is committed to promptly correcting any material errors. When
corrections are made, they are limited to corrections to data that was
available when the index or assessment was calculated.
PART VI: REQUESTS FOR CLARIFICATIONS OF

DATA AND COMPLAINTS
Platts strives to provide critical information of the highest standards, to
facilitate greater transparency and efficiency in physical commodity markets.
Platts customers raise questions about its methodologies and the
approach taken in price assessments, proposed methodology changes and
other editorial decisions in relation to Platts price assessments. Platts
strongly values these interactions and encourages dialogue concerning
any questions a customer or market stakeholder may have.
However, Platts recognizes that occasionally customers may not be
satisfied with responses received or the services provided by Platts and
wish to escalate matters. Full information about how to contact Platts
to request clarification around an assessment, or make a complaint, is
available on the Platts website, at: http://www.platts.com/ContactUs/
Complaints.
IRON ORE: MAY 2015
PART VII: DEFINITIONS OF THE TRADING LOCATIONS FOR WHICH PLATTS PUBLISHES INDEXES OR ASSESSMENTS
The following Iron Ore specifications guide contains the primary specifications and methodologies for Platts Iron Ore assessments throughout the world. The various components of this guide are designed to give Platts subscribers as
much information as possible about a wide range of methodology and specification issues.
This methodology is current at the time of publication. Platts may issue further updates and enhancements to this methodology and will announce these to subscribers through its usual publications of record. Such updates will be
included in the next version of the methodology. Platts editorial staff and managers will usually be ready to provide guidance when assessment issues require clarification.

Mavg
CODE
IODEX 62% FE CFR China
min. 35,000 mt
IODBZ00 IODBZ03 IODBZ02 IODBZ04 62% Fe, 8% moisture, 4.5% silica, 2%
alumina, 0.075% phosphorus, 0.02% sulfur
IO Fines 63.5/63% FE CFR China IODSC00 IODSC03
Wavg
Rolling
QUALITY
Mavg
Assessment
QUANTITY
DIMENSIONS
LOCATION
TIMING
PAYMENT TERMS UOM
Granular size of up to 10
mm for up to 90% of cargo
CFR main Chinese ports, Delivery within 2-8 weeks

normalized to Qingdao from publication date
L/C at sight
USD/dry metric ton
63.5/63% Fe, 8% moisture, 3.5% silica,

3.5% alumina, 0.075% phosphorus
min. 35,000 mt

L/C at sight
USD/dry metric ton
IO Fines 65% FE CFR China
IOPRM00 IOPRM03
65% Fe, 4% moisture, 3.5% silica, 1%

alumina, 0.075% phosphorus
min. 35,000 mt

L/C at sight
USD/dry metric ton
IO Fines FE 58% Low Alumina

CFR China
IONC580 IONC583
58% Fe, 9% moisture, 9.5% loss on

min. 35,000 mt
ignition, 5.5% silica, 1.5% alumina, 0.05%
phosphorus, 0.02% sulfur

L/C at sight
USD/dry metric ton
IO Fines FE 58% CFR China
IODFE00 IODFE03
58% Fe, 10% moisture, 5% silica, 4%

min. 35,000 mt

L/C at sight
USD/dry metric ton
IO Fines FE 52% CFR China
IONC520 IONC523
52% Fe, 14% moisture, 8% silica, 8%

min. 35,000 mt

L/C at sight
USD/dry metric ton
IO Spot Lump Premium 62.5%

CFR China (Weekly)
IOCLP00 IOCLP03
62.5% Fe, 4% moisture, 3.5% silica, 1.5% min. 50,000 mt

alumina, 0.075% phosphorus, 0.02% sulfur
Sizing of max 15% <6.3 mm CFR main Chinese ports, Delivery within 2-8 weeks
and max 15% >31.5 mm
L/C at sight
USD/dry metric
ton unit
IO Australia Lump Premium

Contract Price CFR China (Qtrly)
IOPLC00
Approximates that of commonly traded

Australian brands like Pilbara Blend,
Newman Blend Lump
NA (volumes differ by
term contract)
Not specified but implied

to be reflective of brands
mentioned in F11
Not specified
Not specified but implied to

be delivery within quarter
NA
USD/dry metric
ton unit
1% alumina within 1-2.5% range
NA (this is a differential
of a particular impurity
within a cargo)
NA
NA
NA
NA
USD/dry metric ton
Iron ore Alumina differential per IOADF10

1% with 1-2.5% $/DMT
Mid Range 1% Fe Diff 60-63.5
Fe $/DMt
IOMGD00 IOMGD03
1% Fe within 63-63.5% range
of a particular element
within a cargo)
NA
NA
NA
NA
USD/dry metric ton
Iron ore Silica differential per

1% with 4.5-6.5% $/DMT
IOPPS10
1% silica within 4.5-6.5% range for Fe

grades 60-63.5% Fe
within a cargo)
NA
NA
NA
NA
USD/dry metric ton
Iron ore Silica differential per

1% with 6.5-9% $/DMT
IOPPS20
1% silica within 6.5-9% range for Fe

grades 60-63.5% Fe
within a cargo)
NA
NA
NA
NA
USD/dry metric ton
0.01% phosphorus within 0.09-0.12%

range for Fe grades 60-63.5% Fe
within a cargo)
NA
NA
NA
NA
USD/dry metric ton
66% Fe, 8% moisture, 5% silica, 0.75%

alumina, max 0.03% phosphorus, max
0.05% sulfur
min. 1,000 mt
Granular size of more than

0.074 mm for at least 70%
of cargo
Delivered to mill in
Tangshan, Hebei
Delivery within 2 weeks from Cash at sight

publication date
Iron ore Phosphorus differential per IOPPQ00

0.01% with 0.09-0.12% $/DMT
Iron Ore Cncentrt 66% Fe Dry
China Dom Prod Dlvd Tangshan
Hebei Incl 17%Vat MAvg
SBMAJ03
CNY/dry metric ton

(incl. VAT)
IRON ORE: MAY 2015
IRON ORE ASSESSMENTS CONTINUED

Mavg
Wavg
Rolling
QUALITY
Mavg
Assessment
CODE
Iron Ore Cncentrt 66% Fe Dry

China Dom Prod Dlvd Tangshan
Hebei Incl 17%Vat Wkly
SBO1159
66% Fe, 8% moisture, 5% silica, 0.75%

alumina, max 0.03% phosphorus, max
0.05% sulfur
Atlantic basin Iron Ore Pellets

FOB Basis
SB01095
65% Fe premium quality Brazilian blast

furnace pellet (specifications may be
further defined)
IOMGD00 1% Fe Differential (Range 60-63.5 Fe)

Platts 1% Fe differential is reflective of the value of 1% Fe in
fines within the 60-63.5% Fe range. Its value is determined by
comparing spot transactions of fines within the 60-63.5% Fe.
This per Fe value is assessed daily at Asian market close, and
expressed in USD per dry metric ton.
Per 1% Alumina and Silica Differentials, per 0.01% Phosphorus

Differential (Range 60-63.5 Fe)
IOADF10 Iron Ore Alumina Differential per 1% within 1-2.5% range
IOPPS10 Iron Ore Silica Differential per 1% within 4.5-6.5% range
QUANTITY
DIMENSIONS
LOCATION
TIMING
min. 1,000 mt
Granular size of more than

0.074 mm for at least 70%
of cargo
Delivered to mill in
Tangshan, Hebei
Delivery within 2 weeks from Cash at sight

publication date
The Platts phosphorus differential is reflective of the incremental value of

0.01% within the 0.09-0.12% range contained in a specification of iron ore
fines. The value is determined from market sources buying or selling iron ore
fines 60-63.5%Fe cargoes with differing phosphorus impurities, as well as an
analysis of flat price discounts or premiums to IODEX or 60-63.5% Fe trades.
Currently, Platts understands there is no value adjustment for phosphorus
levels below 0.09% for 60.-63.5% Fe cargoes, with most liquid mainstream
products for this Fe range typically containing 0.06-0,09% phosphorus levels.
However, if there are particular shipments of liquid 60-63.5% Fe cargoes that
are delivered with phosphorus levels exceeding the 0.09% level, such spot
trades can be directly compared to determine the value of this differential.
Normalization for quality

Platts defines base specifications for which deals, bids and offers are
normalized to. Quality normalization involves adjusting for differences
in chemical, physical and metallurgical properties, with the latter two
especially critical in lump and pellet valuation.
IOPPS20 Iron Ore Silica Differential per 1% within 6.5-9% range

IOPPQ00 Iron Ore Phosphorus Differential per 0.01% within 0.09-0.12%
range
Platts alumina and silica differentials are reflective of the 1% value
within specific bands of alumina and silica as stated above, for
which they are deemed to be linear. These values are determined by
comparing the alumina and silica values of spot trades of 60-63.5%
Fe cargoes. Values are also determined from feedback from industry
sources buying or selling 60-63.5% Fe cargoes with differing
alumina and silica impurities. Additionally any flat price discounts
or premiums to IODEX or 60-63.5% Fe trades can also be used to
establish these values.
In normalizing for chemical quality, the most important factors Platts

reflects are iron, alumina and silica. Platts normalizes for differences in
iron content by adjusting on an iron unit basis, when the alumina and
silica contents of an observed product approximate those underlying the
Platts assessments. For example, a cargo with specifications of 61%-Fe,
1.9% alumina and 2.7% silica will be normalized by dividing its price
(transacted, bid or offered) by 61 and then multiplying the result by 62 for
normalization to IODEX specifications, and in accordance with industry
practice. Additional adjustments will be made for alumina and silica to
reflect the underlying Platts assessments.
Ores of grades below 60% Fe and above 63.5% Fe may not be used
directly in the formation of the 62% Fe IODEX due to a lack of linearity in
PAYMENT TERMS UOM

CNY/dry metric ton
(incl. VAT)
USD/dry metric ton
the price escalation/de-escalation on a per Fe basis outside this range.

They may however be referred to as an indicator of general price direction.
Where gangue contents differ from the underlying assessment
specifications, Platts may use the published 1%-Fe differential (IOMGD00)
in its normalization process. For example, for a cargo with 63%-Fe, 1%
alumina and 6% silica, it would be normalized first by adjustment using
the 1%-Fe differential, and then an additional adjustment using the 1%
silica differential for the 4.5-6.5% range, and 1% Alumina differential for
the 1-2.5% range.
Other impurities like phosphorus, sulfur, alkalis and loss on ignition (LOI)
are also considered in the normalization process where known to have
significant impact on value.
Timing and time gradient

The delivery time of cargoes can also impact its price. Platts normalize
trades, bids and offers occurring between 2 to 8 weeks (14-56 days)
forward from the date of publication, so that one-off or distressed trades
where either the buyer or seller has left it too late to transact within
acceptable lead times that can typically be met by counterparties in the
normal course of business.
Platts assess to the middle of the 2 to 8 week delivery period.
Backwardation and contango is factored into all assessments. The
assessments thus reflect the value after taking into consideration the
difference in prices prevailing along the time curve assessed by Platts.
The variability in price increases as the backwardation or contango in the
markets increase in gradient. By normalizing prices to the mid-point of a
clearly defined date range, the consistency of prices is maintained. The
day-to-day changes in the price assessments therefore reflect an actual

price move in the value of the commodity, rather than an artificial change
because a cargo happens to be loading/delivering in the front end of the
window rather than the back end, or vice versa.
the premium each brand commands, incorporating chemical, physical and

metallurgical properties, in large part based on prior knowledge of these
properties and experience using the products.
In a contango market, the excess of prompt material causes the front

end to be significantly cheaper than material available at the end of
the window. In a backwardated market the tightness of supply causes
the prompter volumes to be at a higher price than iron ore available
at the end of the window. Platts methodology eliminates any arbitrary
movement in assessments caused simply by the different loading/delivery
ranges traded.
IOPLC00 IO Australia Lump Premium Contract Price CFR CHINA

(Quarterly)
Platts assessments seek to be inclusive of the various types and time

frames of trade within markets. Any transaction that is negotiated as part
of a framework of longer-term contractual arrangements (term deals) will
be excluded from the assessment process.
This price was initially published March 15, 2013, and represents
lump contract price premiums agreed between suppliers and Chinese
steelmakers for Australian lump. The lump premium is updated each
calendar quarter, in line with the frequency of most existing agreements
between producers and consumers. The premium will be published on a
dollar/dry metric ton unit basis, and will represent the most commonly
traded brands like Pilbara Blend, Mining Area C and Newman lump.
Lump premiums vary from company to company, depending on when
agreements are reached, brands, volumes, and whether they are
negotiated as a package with other products like fines.
IRON ORE: MAY 2015
but they were not reflected as they may not be representative of prices
reached in the broader market.
SB01095 Atlantic Basin Iron Ore Pellets FOB Basis (cent/dmtu)

(Monthly)
This monthly calculated value <SB01095> reflects a provisional contract
settlement price for iron ore blast furnace pellets typically sold in term
contracts, to steel mills primarily in Europe. It is published on the first
business day of each month and then throughout that month in Steel
Markets Daily and accessible on the SBB price analyzer. The calculated
formula for the assessment takes the monthly average netback to Brazil
<IONBB03> of the previous month, as its pricing basis. The quality is
adjusted to 65% Fe, as a basis for pellet pricing, by adding (x3) 1% Fe
differential monthly average <IOMGD03> also for the previous month.
Additionally each month Platts editors assess a pellet premium in US$,
reflecting an additional charge, over the quality adjusted iron ore fines. A
cent/ferrous unit price is calculated by dividing the sum value by 65.
IOCPL00 IO Spot Lump Premium 62.5% CFR CHINA (Weekly)

The assessment is of the premium the lump commands over the
price of fines as defined by the Platts 62%-Fe Iron Ore Index. Market
information obtained on a flat price basis will be converted to a
premium on a dmtu basis.
Metallurgical properties have not been specified in line with current
spot trading convention, as tests are not typically conducted on each
cargo, whether at load or discharge port. Market participants evaluate
The published lump premiums represent what Platts understands most

Chinese mills have agreed to. Premiums that are settled under known,
special circumstances, would be reported about in news articles, but
would be excluded from the published premium levels.
The contract price premium is published in a range. For example, for
January-March 2013, the range was $0.115-0.116/dmtu, as per a Platts
December 21, 2012, news report on the matter. Lower contract price
premiums of $0.10-0.110/dmtu were reportedly obtained by one buyer,
IOBFP00 Atlantic Basin iron ore pellet premium ($US/dry mt)

(monthly)
This is a monthly assessed value for the pellet premium used in
formulating a provisional contract settlement price (SB 01095) for iron
ore blast furnace pellets typically sold in term contracts, to steel mills
primarily in Europe., This value reflects an additional charge, over the
quality adjusted iron ore fines.
IRON ORE: MAY 2015

Assessment
CODE
Mavg
IODEX ppr swaps Mo 1 $/DMt
AAQTM00

IODEX ppr swaps Next Qr $/DMt
IODEX ppr swaps Qtr2 $/DMt
QUALITY
QUANTITY
DIMENSIONS
LOCATION
TIMING
PAYMENT TERMS UOM
AAQTM03
Basis 62%-Fe Platts Iron Ore Index specifications
Not specified
Not specified
CFR Qingdao
First month after month of prevailing

assessment date
Not specified
USD/dry metric ton
AAQTN00
AAQTN03
Not specified
Not specified
CFR Qingdao
Second month after month of

prevailing assessment date
Not specified
USD/dry metric ton
IOPSM30
IOPSM33
Not specified
Not specified
CFR Qingdao
Third month after month of prevailing

Not specified
assessment date
USD/dry metric ton
CFR Qingdao
First quarter after quarter of

Not specified
USD/dry metric ton
CFR Qingdao
Second quarter after quarter of

Not specified
USD/dry metric ton
Not specified
USD/dry metric ton
AAQTO00
IOPSQ20
AAQTO03
IOPSQ23
Wavg

Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
CFR Qingdao
Third quarter after quarter of

Not specified
Not specified
CFR Qingdao
First year after year of prevailing

assessment date
Not specified
USD/dry metric ton
ITSIM11
Basis spread observed/implied from 62%-Fe

IODEX minus 62%-Fe TSI index
Not specified
Not specified
CFR Qingdao
First month after month of prevailing

assessment date
Not specified
USD/dry metric ton
ITSIM20
ITSIM23

Not specified
Not specified
CFR Qingdao
Second month after month of

Not specified
USD/dry metric ton
SWITCH IODEX versus Steel Index 62%

Mo03 $/DMt
ITSIM30
ITSIM33

Not specified
Not specified
CFR Qingdao
Third month after month of prevailing

Not specified
assessment date
USD/dry metric ton

Qr01 $/DMt
ITSIQ10
ITSIQ11

Not specified
Not specified
CFR Qingdao
First quarter after quarter of

Not specified
USD/dry metric ton

Qr02 $/DMt
ITSIQ20
ITSIQ23

Not specified
Not specified
CFR Qingdao
Second quarter after quarter of

Not specified
USD/dry metric ton

Qr03 $/DMt
ITSIQ30
ITSIQ33

Not specified
Not specified
CFR Qingdao
Third quarter after quarter of

Not specified
USD/dry metric ton

CalendarYear 01
ITSIY01
ITSIY11

Not specified
Not specified
CFR Qingdao
First year after year of prevailing

assessment date
Not specified
USD/dry metric ton
IODEX ppr swaps Qr03 $/DMt
IOPSQ30
IODEX ppr swaps CFR Qingdao calendar

year 01
IOPCY01

Mo01 $/DMt
ITSIM10

Mo02 $/DMt
IOPSQ33

Platts publishes daily assessments for monthly, quarterly and next
calendar year CFR North China iron ore swaps. These financial
instruments are traded fixed price (e.g. $80/mt) or in intermonth
spreads. Swaps are derivatives which settle off the average value of
the underlying physical benchmark price, Platts IODEX 62% Fe iron ore
fines CFR China, as published on each day during the month of trade (e.g.
November). Platts publishes swaps assessments for two/three months
ahead, called month one (M1), second month (M2) and third month (M3).
Platts also publishes assessments for the next three calendar quarterly
swap. Monthly assessments will be rolled on the first day of the month.
For example, during October 2009 the M1 iron ore swap will be November
2009, M2 will be December 2009, and the published quarterly swap will
be Q1 2010. On November 1 the M1 iron ore swaps will roll to December,

M2 will roll to January, and the quarterly swap will still be Q1 2010.
As of March 1, 2012 Platts also publishes a corresponding spread
differential for each swap, referred to in the market as a switch which
prices the spread differential between swaps settled on Platts IODEX and
those settled on Platts The Steel Index iron ore assessment. Platts will
extend assessments down the forward curve to include further monthly,
quarterly and annual swaps contracts, as and when market liquidity in
these instruments develops.
Timing: Swaps assessments reflect a market-on-close value at 17:30hrs
Singapore time. The assessments reflect the tradable level at this time.
Swaps bids/offers and trades will be reported in real-time throughout the
day on Platts electronic information service, Platts Metals Alert (PMA )

and a summary of trades published after market close in Platts Steel
Markets Daily. Full calendar month swaps for the month-ahead and the
subsequent month are quoted throughout the calendar month prior to
rollover. Rollovers occur on the first working day of the month.
General reporting principles applicable to all derivatives markets: Platts
only publishes and evaluates information from sources considered
credible and creditworthy. Bids/offers of paper swaps received by Platts
after published timing cut-off guidelines will be disregarded and not
published.
Firm, executable bids or offers posted onto Platts Metals Alert page
700 will be taken into consideration for assessments. Assessments are
10
a reflection of deals and bid/offers and are subject to careful review.

Information will be cross-checked to ensure data integrity. Assessments
reflect the value of market on close. Illiquid markets may be assessed
relative to more active benchmarks with more accurate price discovery.
Transactions done after market close will be disregarded.
Brief explanation of derivatives terminology:

Swap: A financially-settled contract traded in the over-the-counter
(OTC) market. Swaps or paper are risk management tools which
allow users to lock in values by transforming floating price risk to
fixed or fixed to floating. Swaps are also used as a speculative tool.
Swaps trade freely in an over the counter market and can trade at
any time. Paper markets are very reactive and provide players with an
instant feedback of market conditions. Platts reflects the immediate

changes in swaps market values as market heards on Platts Metals
Alert page 700.
Financial settlement: Unlike physically-settled forward cargo trades,
paper swaps are financially-settled derivative contracts. For example, the
difference between buying an April iron ore cargo and an April iron ore
swap is this: in the first case the buyer would take delivery of a cargo
of the product, while in the second case the buyer would pay (or be paid)
the difference between the swap price and the average of Platts iron ore
cargo assessments in April.
Month: A calendar monthly swap is quoted for the full month calendar
month, i.e. from the first to the last business working day in the month.
Then the monthly swap assessment is rolled over.
IRON ORE: MAY 2015
Quarter: Quarters are defined as calendar quarters, for example Q3

refers to July, August and September. Quarterly swap assessments
roll four times a year on the first business days of January, April,
July and October.
Year: A year is defined as a calendar year, for example 2015, i.e. from the
first to the last business working day in that year.
Time spreads: Each market has its own timing structure, defined by
the steepness of price backwardation or contango. This timing structure
changes constantly, and a swaps market can develop around the
correlations between prompt and forward timings. Swaps are frequently
traded on a month against month basis, as well as quarter against quarter
and year against year.
11
IRON ORE: MAY 2015
FREIGHT NETBACKS
Assessment
CODE
Mavg
IODEX netback Australia Capesize $/DMt
IONBA00
IODEX netback West India Panamax $/DMt
Wavg
QUALITY
QUANTITY
DIMENSIONS
LOCATION
TIMING
PAYMENT TERMS UOM
IONBA03
moisture 8.03
NA
NA
FOB Port Hedland
NA
NA
USD/dry metric ton
IONBI00
IONBI03
moisture 8.11
NA
NA
FOB Mormugao
NA
NA
USD/dry metric ton
IODEX netback West Handymax India $/DMt
IONBW00
IONBW03
moisture 8.11
NA
NA
FOB Mormugao
NA
NA
USD/dry metric ton
IODEX netback East India Handymax $/DMt
IONBE00
IONBE03
moisture 8.00
NA
NA
FOB Haldia and Paradip
NA
NA
USD/dry metric ton
IODEX netback Brazil Capesize $/DMt
IONBB00
IONBB03
moisture 9.00
NA
NA
FOB Tubarao
NA
NA
USD/dry metric ton
IODEX netback South Africa Capesize $/DMt
IONSA00
IONSA03
moisture 3.00
NA
NA
FOB Saldanha Bay
NA
NA
USD/dry metric ton
FREIGHT & NETBACKS

Please see our Freight/Shipping Methodology and Specifications Guide at
http://www.platts.com/methodology-specifications/shipping
The FOB netbacks published daily are automatically calculated using a
formula that deducts the respective dry bulk freight assessments from
the days IODEX 62% Fe iron ore assessments on a CFR Qingdao basis,
assuming moisture commonly seen in ores of various origins. All freight
assessments and FOB netbacks are published in Platts SBB Steel Markets
Daily and Platts Metals Alert PMA page MW1106.
12
IRON ORE: MAY 2015
REVISION HISTORY
May 2015: This methodology guide was updated to include the new
phosphorus differential assessment which was launched May 18, 2014,
February 2015: This methodology guide was updated to include further
description of Platts processes and practices in survey assessment
environments.
July 2014: Platts revamped all Metals Methodology and Specification
guides, including its Iron Ore guide, in July 2014. This revamp was
completed to enhance the clarity and usefulness of all guides, and
to introduce greater consistency of layout and structure across all
published methodology guides. Methodologies for market coverage
were not changed through this revamp, unless specifically noted in the
methodology guide itself.
13

Iron Ore

Uploaded by

Copyright:

Available Formats

Iron Ore

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Iron Ore

Uploaded by

Copyright:

Available Formats

[STEEL ]

METHODOLOGY AND SPECIFICATIONS GUIDE

HOW THIS METHODOLOGY STATEMENT IS ORGANIZED

PART I: DATA QUALITY AND DATA SUBMISSION

PART II: SECURITY AND CONFIDENTIALITY

PART III: CALCULATING INDEXES

MOC PRICE ASSESSMENT PRINCIPLES

PART IV: PLATTS EDITORIAL STANDARDS

PART VI: REQUESTS FOR CLARIFICATIONS OF DATA

METHODOLOGY AND SPECIFICATIONS GUIDE

Part II describes any security and confidentiality practices that

Part III is a detailed account of how Platts collects bids, offers,

Part IV explains the process for verifying that published prices

All Platts methodologies reflect Platts commitment to maintaining best

Part VI explains how users of Platts assessments and indexes can

Part VII is a list of detailed specifications for the trading locations

HOW THIS METHODOLOGY STATEMENT IS ORGANIZED

COPYRIGHT 2014 BY PLATTS, McGRAW HILL FINANCIAL

IRON ORE: MAY 2015

measurement are used, and what conversion factors are used to

PART I: DATA QUALITY AND DATA

METHODOLOGY AND SPECIFICATIONS GUIDE

Firm bids that are open to the marketplace as a whole, with

Firm offers that are open to the marketplace as a whole, with

Expressions of interest to trade with published bids and offers,

Indicative values, clearly described as such

Reported transactional activity heard across the market, clearly

Other data that may be relevant to Platts assessments, such as

Commonly used Instant Messaging software

MOC DATA PUBLISHING PRINCIPLES

IRON ORE: MAY 2015

bids, offers, interest to trade, transactions that have been previously

In such environments, Platts collects as much data as possible, including

COPYRIGHT 2014 BY PLATTS, McGRAW HILL FINANCIAL

METHODOLOGY AND SPECIFICATIONS GUIDE

PART II: SECURITY AND CONFIDENTIALITY

PART III: CALCULATING INDEXES

MOC PRICE ASSESSMENT PRINCIPLES

IRON ORE: MAY 2015

provides a robust basis upon which to derive a reliable assessment of

Iron ore assessment timestamp

Through the MOC assessment process, Platts considers market

Platts does not specify a minimum amount of transaction data, or a

Through the progressive adoption of the MOC assessment process, Platts

Platts seeks to receive market information from as broad a cross section

COPYRIGHT 2014 BY PLATTS, McGRAW HILL FINANCIAL

METHODOLOGY AND SPECIFICATIONS GUIDE

than half of all available information to be one where such a company

NORMALIZATION PRICE ADJUSTMENT TECHNIQUES

Normalization for time may be done by analyzing movement in a related

IRON ORE: MAY 2015

Platts assessment process considers firm bids, firm offers and

Platts also analyzes the relationships between different products,

Transparency underpins Platts assessment process, just as it does Platts

COPYRIGHT 2014 BY PLATTS, McGRAW HILL FINANCIAL

Platts MOC guidelines are designed to avoid any distortion of the

METHODOLOGY AND SPECIFICATIONS GUIDE

publication and exercise of professional judgment is further discussed

PART IV: PLATTS EDITORIAL STANDARDS

COPYRIGHT 2014 BY PLATTS, McGRAW HILL FINANCIAL