Brazil's Vale cancels first spot tender for SFOG fines this year on low bids: trade

Singapore (Platts)--14Nov2012/559 am EST/1059 GMT


Brazilian miner Vale was heard to have canceled its first spot tender this year for a 61.5%-Fe Sinter Feed Ore Guaiba (SFOG) iron ore fines cargo, trade sources said Wednesday.

"Vale is not going to sell this cargo today as I think even the highest [bid] will not be good enough for them," a Singapore-based customer of Vale said.

He added that Vale had higher price expectations for the SFOG cargo and with bids not rallying up to that level, they chose not to award the parcel to any buyer instead.

Trade sources also said this was not a popular cargo for buyers to consider as the silica content, weighing in at 7.2%, was relatively high for a cargo containing that level of iron.

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A company source at Vale's Singapore office declined comment on the matter, while two others could not be reached.

This 150,000 mt shipment contained 1.9% alumina, 7.2% silica, 0.06% phosphorus, 0.3% manganese, 2.1% loss on ignition and 8.5% moisture, and will pass Singapore December 16, according to traders who received the tender earlier.

--Celestyn Wong, celestyn_wong@platts.com