Argus iron ore indices input data type/depth/breadth.

1. London
Houston
Washington
New York
Portland
Calgary
Santiago
Bogota
Rio de Janeiro
Singapore
Beijing
Tokyo
Sydney
Dubai
Moscow
Astana
Kiev
Porto
Johannesburg
Riga
Market Reporting
Consulting
Events
Argus Iron Ore Indices
Driving the new standard of transparency
Month of January 2018
Data Drill Down of ICX and PCX
Prepared February 2018

2. 2
Argus covers seaborne and portside iron ore markets
Copyright © 2018 Argus Media Ltd. All rights reserved.
China portside market
Key index: PCX 62%
With brand differentials for…
PB Fines, BRBF, NHGF, SSF
Seaborne market
Key index: ICX 62%
With grade differentials for…
58% Fe, 65% Fe, Lump
Premium

3. 3
• From 1 December 2017, Argus updated the methodology of its headline
ICX™ 62pc index to make it the best fit for today’s iron ore market.
• The revised methodology takes advantage of increased depth and
breadth of data available in the market.
The Argus ICX™62pc Iron Ore Index
Normalised
to ICX
Spot transactions
reported by market
Screened
for outliers
Volume-
weighted
average
Index

4. 4
How is data processed?
Copyright © 2018 Argus Media Ltd. All rights reserved.
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E-Platform trades
Bilateral trades (100%)
Matched Platform
bids/offers (20%)
Floating deals
(10%)
Trade data
(bids and offers)
and indicative levels
Fall-back
• Under a volume-weighted average
system, the increased pool of market
data is accorded different volume
weightings (in brackets).
• Data is sorted into four tiers. Fixed
price transactions with a full audit trail
receive full weighting. Executable bid
and offer pairs on trading screens are
next down, then floating price
transactions.
• As a fall-back, bilateral bids and offers
may be used at a low weight.

5. Market Reporting
Consulting
Events
5
Argus ICX™62pc Fe – The Seaborne Index

6. 6
Monthly ICX movement and daily average
Copyright © 2018 Argus Media Ltd. All rights reserved.
$73
$74
$75
$76
$77
$78
$79
$80
02 Jan 18 09 Jan 18 16 Jan 18 23 Jan 18 30 Jan 18
ICX 62%: January Average US$75.78/dmt

7. 7
What’s in your index? This is ICX: January 2018
Copyright © 2018 Argus Media Ltd. All rights reserved.
Submitted data
• Total number of data points received: 336
• Daily average received: 15
• Total Contributed Tonnes: 54,284,2339
• Contributing Companies: 45
Submitted Data Composition
• Tier 1 Fixed Price Deals: 26
• Tier 2 Matched Screen Bid Offer Pairs: 4
• Tier 3 Floating Deals: 13
• Tier 4 Bilateral Bid/Offer: 293
Submitted Volume Data
• Total volume (tonnes) received: 54,284,399
• Total volume (tonnes) employed: 4,930,155
• Tier 1-3 Data employed: 4,402,340
• Overall use of Tier 1-3 Data in index creation: 65.0%

8. 8
ICX Data Sources: January 2018
Tier Tier
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
1 2 3 4
Jan-18 - Actual volumes (DMT)
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
1 2 3 4
Jan-18 - Weighted Volumes (DMT)
-
1,000,000
2,000,000
3,000,000
4,000,000
Daily Volumes (DMT)
Tier 4 - Bilateral B/O (报价和还盘）
Tier 3 - Floating (浮动价）
Tier 2 - Screen B/O (平台上的报价和还盘）
Tier 1 - Fixed (固定价)
67%
33%
Transaction Breakdown
Fixed Price 固定价格 Floating Price 浮动价

9. 9
ICX Data Sources: January 2018
0
2
4
6
8
10
12
14
16
Fixed Floating Fixed Floating
Platform Bilateral
Transaction Type & Channel
0
2
4
6
8
10
12
14
16
COREX globalORE Bilateral COREX globalORE Bilateral
Fixed Floating
Transaction Type & Channel
4 5 24 11
0 10 20 30 40 50
January (1月)
Index Participation – 45 companies
International miner (国际矿山) International trader (国际贸易公司)
Chinese trader (中国贸易公司) Chinese steel mill (中国钢厂)
80%
20%
Index Participant Headquarters
China Ex-China

10. Market Reporting
Consulting
Events
10
Argus PCX™62pc Fe – The China Port Stock Index

11. 11
• What portside indices do you have?
 PCX (62% Fe) is the Argus benchmark index.
◦ Three mainstream brands differentials to PCX published daily:
‐ Newman High Grade Fines (BHP) NHGF
‐ Brazilian Blend Fines (Vale) BRBF
‐ Pilbara Blend Fines (Rio) PBF
Iron ore pricing at Chinese portside
Copyright © 2018 Argus Media Ltd. All rights reserved.
 PCX (62% Fe) is the direct counterpart to seaborne 62% Fe.
◦ Argus also publish a fourth blend:
‐ Super Special Fines (Fortescue) SSF
 Index history back to 2014.

12. PCX Movement and average January 2018
Copyright © 2018 Argus Media Ltd. All rights reserved.
Yuan/wmt
¥500
¥510
¥520
¥530
¥540
¥550
¥560
¥570
02-Jan-2018 09-Jan-2018 16-Jan-2018 23-Jan-2018 30-Jan-2018
PCX 62%: January Average CNY 541/wmt

13. 13
What’s in your index? This is PCX: January 2018
Copyright © 2018 Argus Media Ltd. All rights reserved.
Submitted data
• Total number of data points received: 568
• Total tonnage: >2,840,000 wet tonnes
• Total number of Transaction prices: 396
• Daily average received: 26
• Contributing Companies: 35

14. 14
Portside data is deep – smaller clip sizes provide increased
fixed price transaction liquidity.
Copyright © 2018 Argus Media Ltd. All rights reserved.
PCXdatacollected
18 fixed price trades per day on average
0
5
10
15
20
25
30
35
40
02Jan18
03Jan18
04Jan18
05Jan18
08Jan18
09Jan18
10Jan18
11Jan18
12Jan18
15Jan18
16Jan18
17Jan18
18Jan18
19Jan18
22Jan18
23Jan18
24Jan18
25Jan18
26Jan18
29Jan18
30Jan18
31Jan18
Indicative
Bid/Offer
Trades

15. 15
35 companies provided data to the Argus PCX portside index
in January 2018
Copyright © 2018 Argus Media Ltd. All rights reserved.
37%
63%
Mills
Traders
Data Origin

16. 16
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