Jimblebar fines sells on Argus-TSI on Globalore

OREANDA-NEWS. The first platform transaction for Jimblebar fines using the Argus ICX-TSI 62pc basket of indexes was concluded on the Singapore-based Globalore platform today.

An 80,000t shipment of 62pc basis Jimblebar fines for October delivery was sold at a \\$1.40/t premium to the average of October Argus ICX, the price for 62pc Fe iron ore imported to China, and the TSI 62pc index minus 30?/t.

A bid at a \\$1.00/t premium to the October average of the ICX and TSI 62pc index minus 30?/t for a 90,000t shipment with first half October delivery was made on Globalore, but did not attract an offer.

A second fixed-price deal for a shipment of 62pc Jimblebar fines was also concluded on the Globalore platform. The deal for a 90,000t shipment of October delivery fines was concluded at \\$56.90/t.

BHP Billiton's Jimblebar Mining Hub in the Pilbara region of Western Australia started operations in 2013 and has the capacity to produce more than 45mn t/yr. Jimblebar has become increasingly popular in the high-grade fines category as mills have become accustomed to its product specifications and stable quality.

The discount for Jimblebar fines against other mainstream brands has narrowed as historically low iron ore, metallurgical coke and finished steel prices have narrowed ViU-based and market-based phosphorus adjustments. Intangible factors, such as brand novelty have also become less important. Mill operators have become used to substituting Jimblebar for other mainstream high-grade fines products.

The discount for long term customers of 61.3pc basis Jimblebar fines against the Argus ICX-TSI 62pc Fe index basket minus 30?/t has narrowed and was around \\$1.80/t earlier this year, Chinese market participants said.