SINGAPORE, Nov. 19 /PRNewswire/ -- Platts, the leading global energy and metals information provider, today announced that its benchmark iron ore assessment IODEX 62% Fe (iron content) will be used by the IntercontinentalExchange (ICE) to clear a Platts-based iron ore swaps contract, which will be launched on December 2.
Platts introduced to the global marketplace the world's first daily price assessments of seaborne iron ore in June 2008. "At that time, Platts recognized the importance of a fast-evolving spot market in iron ore, one of the largest commodity sectors globally," said Karen McBeth, editorial director of the Platts metals group. "After their introduction, our iron ore assessments quickly became the most important indicator of value at a time when the industry was changing its long-term contractual practices," she added.
Platts' price assessments are underpinned by a robust methodology of guidelines and quality protocols. Its IODEX assessments are based on all-day market monitoring and data collection of transactions, bids, offers and other information from market participants during the Asian business day until the market close at 18:30 Singapore time. The data is normalized and a neutral origin 62% Fe content iron ore fines price assessment is published immediately in Platts' Metals Alert (PMA), a real-time metals price and news wire service. The data is published again at the end of the U.S. trading day in Platts' Steel Markets Daily, an online and print publication that offers news, market commentary and price information aimed at the steel, construction and auto industries as well as commodities-focused money managers worldwide.
"The Platts daily IODEX assessment of iron ore delivered to China has not only received wide acceptance as an accurate and independent benchmark for pricing physical cargos, but has facilitated the very development of transparent price discovery in this burgeoning market," noted Francis Browne, director of steel and iron ore at Platts. "With ICE Clear's launch, the financial community will now be able to benefit from Platts' long experience in spot market valuation and have another tool to help address risk mitigation."
The global spot market for iron ore fines, a key steelmaking ingredient, is dominated by China's import market. China imported 471 million metric tons in 2008 and is on target to import 630 million metric tons this year to feed its growing steel demand, which is highly correlated to its economic growth.
Platts has been assessing prices in the metals markets for more than 35 years, drawing on the tradition of its parent company, The McGraw-Hill Companies, which has covered the metals markets since 1930.
Since its June 2008 introduction of daily seaborne iron ore assessments, Platts has rapidly expanded its offering for the iron ore market, which now includes price assessments for iron ore grades 62% Fe and 63.5/63% Fe, high-grade 65% Fe and a low-grade 58% Fe, as well as a daily 1% per Fe content differential for 60-63.5% iron ore fines to help clarify the normalization process. Platts also publishes daily freight netbacks based on the most liquid routes to five basis origins. A first-ever forward curve assessing the daily bid/offer and trade values in the over-the-counter swaps market for iron ore has also recently been launched.
To learn more about Platts' price assessment process and other available products and services, visit www.platts.com.
About Platts: Platts, a division of The McGraw-Hill Companies (NYSE: MHP), is a leading global provider of energy and commodities information. With a century of business experience, Platts serves customers across more than 150 countries. An independent provider, Platts serves the oil, natural gas, electricity, emissions, nuclear power, coal, petrochemical, shipping, and metals markets from 17 offices worldwide. Platts' real-time news, pricing, analytical services and conferences help markets operate with transparency and efficiency. Traders, risk managers, analysts, and industry leaders depend upon Platts to help them make better trading and investment decisions. Additional information is available at http://www.platts.com.
About The McGraw-Hill Companies: Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, Platts, Capital IQ, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at www.mcgraw-hill.com.
SOURCE Platts
For further information: Kathleen Tanzy, +1-212-904-2860 or +1-917-331-4607, kathleen_tanzy@platts.com; In Asia: Casey Yew, +65 653 06552; In Europe: Shiona Ramage, +44 207 1766153
© PR Newswire
