Metal Bulletin’s monthly Value-In-Use (VIU) Indices show that the penalty or premium for 1% alumina stood at $3.24 per tonne on May 2, compared with a level of $2.80 per tonne on January 2.
The VIU for 1% silica on the other hand has narrowed to $2.73 per tonne on May 2 from $4.03 per tonne on January 2, the largest since its launch in December 2013.
The alumina VIU had hit $3.50 per tonne in March 2018, the biggest since its debut in October 2014.
These VIU-indices measure the price impact of each percentage point of that chemistry deviated from the benchmark grade, all other factors being equal.
The better reception of low-alumina iron ore has been underlined by recent transactions that show materials such as Brazilian Blend Fines (BRBF) with 1.5% alumina commanding a premium over Australian fines with typically more than...