Rio Tinto tenders PB fines and lump

 Rio Tinto on Thursday sold 140,000 mt of 61% Fe Pilbara Blend fines at parity to the May average of the IODEX assessments after freight and iron content adjustments through a spot tender. This  was coloaded with 95,000 mt of 62% Fe PB lump that the miner sold at plus $0.139/dmtu CFR China over the May IODEX assessments. This combined shipment will load May 25-June 4. With he market price of PB fines on a floating price basis deemed tradeable at plus $0.30/dmt to the IODEX, the implied subsidy on the fines, expressed per mt of lump, was calculated by multiplying $0.30/ dmt by 100,000 mt and dividing the result by 70,000 mt, yielding $0.4286/dmt.Dividing that by 62, the indicative iron content of PB lump, would give $0.0069, the value of the subsidy  on a dmtu basis. After accounting for the subsidy, the price of PB lump — had it been sold as a single parcel rather than as part of a combined shipment — could be deduced as $0.132/dmtu.