MEDIA RELEASE PR37209
Platts Iron Ore Price Assessment Will be Used to Clear ICE Contract
SINGAPORE, Nov. 20 /PRNewswire-AsiaNet/ --
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
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
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
SOURCE: Platts
CONTACT:
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
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