What is the Platts Iron Ore Index?
This index analyzes bids, offers, expressed trade interest, and confirmed trades of iron ore. It is based on the standard specification of iron ore fines and is used as a benchmark assessment of the spot price of physical iron ore. The index’s use can also be extended to different forms of iron ore including lump, pellet, and concentrate, accounting for quality differences when compared to base specifications.
Why is the Platts Iron Ore Index valuable?
There’s quite a few applications for the Platts Iron Ore Index that makes it an invaluable tool for the steel industry. It is typically used by steelmakers, traders, and mining companies when pricing both long-term contracts and spot buys. Additionally, it provides a level of transparency into the industry as businesses evolve their pricing methods. In 2010, it was adopted as the most used spot price index when the dynamic between major mining companies and steelmakers shifted.
What should you do?
If you’re looking for an indicator that provides more transparency into raw material input pricing, understanding the Platts Iron Ore Index can benefit your business. Majestic’s CORE Report follows the Platts Iron Ore Index; along with other indicators every week to see where the market stands.
Source: S&P Global