The new index was proposed following market demand for increased price transparency for ore with lower alumina content than is reflected by the existing MBIOI-62 in the spot market.

On its debut, the MBIOI-62-LA index stood at $71.15 per tonne cfr China.

The MBIOI-62-LA will follow the same methodology as Metal Bulletin’s other iron ore indices but will not include separate subindices for producers, consumers and traders.

An internal calculation of a historical series for this index shows the vast majority of eligible transactions occur on a transparent platform basis and therefore are not deemed to pertain to any particular market segment.

Online trading platforms such as GlobalOre have boosted transparency in physical iron ore trading and the price discovery process, according to market participants.

Last year, GlobalOre had added Metal Bulletin’s Pilbara Blend Fines Differential (MBIOI-Diff-PBF) to the pricing options available for market members to select when transacting.