Replies to post #29684 on Cotton & Western Mining Inc (fka CWRN)

[pesquero]

http://www.steelbb.com/steelglossary/#l_3

"Dry metric tonne unit
This is the internationally accepted unit of measure for iron ore pricing.

A dry metric tonne unit (dmtu) is 1% of iron (Fe) contained in a tonne of ore, excluding moisture. The price per tonne of a consignment of iron ore is calculated by multiplying the cents/dmtu price by the percent Fe content of the ore in that shipment.

For example, a 67% Fe content iron ore will priced at the contracted dmtu price multiplied by 67, a 55% Fe content ore at the dmtu price multiplied by 55, etc.

Iron ore contract prices are quoted in US$ cents."

MB and Platts Indexes are "normalized" ONLY in the sense that they reflect a "Benchmark Spot Price" for 62% Fines delivered to North China AND Instead of quoting in cents/ dmtu they simplify it by quoting a full Metric Tonne.

Complicated, huh....

[ontopofit]

Nice post! Nothing but the facts!


How beautiful is that!!


Thank you

[sth2]

Road Worthy: That is my understanding of the %/Volume/price(Platt) setting also. Unless the rest of the world decided to take the Mathematical term 'normalization' and change it. Meaning they establish the Fe Content, normalize it to the volume and from them on out they price the volume accordingly and therefore need only worry about weight/unit volume in the shipping.

HOWEVER, having said that, I will default, for the moment, to pesquero's decription since he has way more practical knowledge then I do in this feild.

Guess I had better get my but in gear and educate myself some more,

Steve