VALE SETS PREMIUM OF US$ 1.5 FOR FINES CARGOES, SAY SOURCES

Brazilian iron ore miner Vale has changed its pricing mechanism for Southern System Fines term cargoes, setting a premium of $1.50/dmt to an IODEX-based matrix for February and March after selling at parity to the same matrix for a long time, term buyers said Friday according to Platts.

Vale will now adjust the differential on a monthly basis rather than leaving it fixed at the matrix level, sources with term contracts with the miner said.

Brazilian Southern System fines include Standard Sinter Feed Guaiba, or SSFG, and Standard Sinter Feed Tubarao, or SSFT, both medium-grade fines with low alumina, phosphorus and high silica levels.

The Brazilian miner had previously utilized the 1% silica and alumina differential published by Platts to set the discount for these high silica products, but this discount would discontinue while a $1.50/dmt premium was further accorded to these products.