The ongoing limited supply of DRI/HBI in the global market has kept prices rather strong, especially amid the firm demand seen in Europe.
The Libyan mill is holding an export tender for HBI: buyers are still waiting for $320/mt FOB, stable compared to the previous tender, but the seller targets $330/mt FOB. Some market sources said that for HBI, which has much better transportation characteristics, a fair price would be $330/mt FOB, while for merchant DRI it is hardly above $320-325/mt FOB.
A deal for 30,000 mt of ex-Middle East DRI is heard to have been done to Europe, but the price has not been finally confirmed by the time of publication. One trader has assessed the tradable level at $345/mt CFR, while another large player in the European market believes that nothing below $350/mt CFR will be hard to find.
Europe has tried to book all possible HBI volumes for this year and even next year. With CBAM coming and its obvious limitations for imports of pig iron, demand [for DRI/HBI] is growing,” a market source commented. The latest import pig iron deals to Europea were done at $420-425/mt CFR for arrival before the end of this year, and new offers are at $425/mt CFR and above, but buyers are cautious due to CBAM.
Some small volume of Libyan HBI has been available in North Africa at $330/mt FOB.
As for the sanctioned DRI/HBI, supply has not been so ample either. Some Venezuelan HBI is heard offered at $300/mt CFR Mediterranean region, while ex-Iran cold DRI can be booked at $250/mt FOB, meaning even below that CFR level. Major Russian HBI exporters have reduced allocations of HBI, trying to push more high-grade iron ore instead, especially expecting a ban on Russian HBI in Europe starting from 2026.
The SteelOrbis reference price for import HBI in Mediterranean has settled at $345-355/mt CFR, moving up by $5/mt over the past fortnight.