What does Platts mean?
Platts pricing refers to Platts iron ore pricing, where Platts refers to Platts energy information. Platts iron ore price index made by Platts Energy Information plays an important reference role in iron ore price. Platts price index has become the basis of global iron ore pricing.
Platts' pricing is mainly based on the highest inquiry of the buyer and the lowest quotation of the seller on that day, and the data of miners, steel mills and traders are collected. Platts will select 30 to 40 of the most active companies for inquiry, regardless of whether the actual transaction takes place or not.
Platts pricing system has been the main system of iron ore pricing for a long time, but it was broken by iron ore futures products in China. China is the world's largest producer of steel and the largest importer and consumer of iron ore. In order to further enhance the international influence of China price and cooperate with the internationalization of RMB, the iron ore futures of Dashang Institute were officially launched to overseas traders on May 4, 20 18.
In 20 19, Brazil's Vale Metal (Shanghai) Co., Ltd., the world's largest iron ore producer, signed a basis trade contract with domestic steel mills based on iron ore futures prices, which marked that overseas mines began to recognize and explore the use of China prices for RMB-denominated settlement, and took an important step in exploring the establishment of a global commodity pricing mechanism denominated in RMB.
The above is about the sharing of Platts pricing content, hoping to help everyone.