China Iron & Steel Association has started revising its iron ore price index methodology
The report quoted a CISA official as saying that “At the request of our member mills, we will be placing greater emphasis on actual transaction prices instead of an index and may be adding more varieties of iron ore to our basket for calculating the iron ore price index instead of only fines.”
He added that “The association is also open to publishing seaborne iron prices for some individual Chinese ports should Chinese mills need it to do so.”
CISA started publishing its iron ore index on a weekly basis on October 11 2011 and increased the frequency to daily from January 2, 2014. Besides selecting 1994 iron ore prices as the basis, CISA also included components of imported iron ore prices in dollars for seaborne cargoes and in yuan for port inventories, both including 62% and 58% Fe, into its index calculation. Prices of domestically produced iron ore both for 62% and 65% grade concentrates are also included in the index’s calculation.
Source – Platts
Zhejiang Yaang Pipe Industry Co., Limited