The iron ore index developed by Metal Bulletin
(MB), a sister publication of AMM, is an accurate
representation of the seaborne merchant market for sinter fines
delivered to China.
The index is based on actual transactions reported to MB by
any market participant who is conducting trades on a c.f.r.
China spot basis. MB is totally impartial, seeks to report an
open and transparent representation of the market and has no
financial interest in the level or direction of the index.
The base target specification, detailed below, has been
chosen to accurately reflect the reality of the physical
market. Material that differs from the base specification but
falls within the target range is normalized to the base
specification and port.
The normalization coefficients have been developed using
MB's extensive historical data and history of reporting prices
in this market and weekly updated freight rates.
Three sub-indices are created, based on data received from
producers, traders and consumers. The sub-indices are based on
a tonnage weighted average of the trade information. The final
index is the non-weighted average of the three sub-indices.
Only the final index is published.
MB will seek to utilize at least 12 trades-four for each
sub-index-as a minimum to calculate the index. In the unlikely
event this is not achievable, assessments from market
participants will be included in the index calculation via a
If fewer than four trades are reported for a sub-index, a
minimum of four assessments will be averaged to create an
assessment price. This will be combined at the rate of 25
percent with three transactions, 50 percent with two
transactions, 75 percent with one transaction and 100 percent
with no transactions.
All data points that fall greater than 4 percent away from
the calculated index are excluded, and the index recalculated
once. Outliers will be investigated, and attempts to influence
the index unfairly will result in the data provider being
warned or excluded.
Data is submitted in a secure manner by telephone, e-mail or
directly through the website. All correspondence will be
The normalization coefficients will be updated twice a year,
and will be published on the first index release date in
January and July of each year. The new coefficients will be
based on data collected over the previous six months.
In the event of public holidays in Britain, the index will
be published on the previous working day. In the event of
technical difficulties or other unforeseen problems, the index
will be published from MB's Singapore or Shanghai office, as
Material in the form of pellets and lumps is excluded.
Domestic Chinese material, and material imported by routes
other than by sea-by train or truck, for example-is also
excluded, as is material that has already been delivered and is
held on stockpile at the dock.