Prices for HBI in the Mediterranean region have been gradually declining over the past two months, even though overall supply has been limited. The new tender from the major mill in Libya was opened this week, and its results are being closely awaited by market sources.
According to market sources, the expected price for HBI from Libya is $350-355/mt FOB, down from the $367/mt FOB level seen in the previous auction, which closed in late May. “This tender is still going on, and we have strong demand also, but this time we could sell a smaller quantity,” a mill source said. As reported earlier, the total sales volume in the previous tender was 125,000 mt.
At the same time, buyers in Turkey and Europe have been waiting for even lower levels. Some mills in Turkey consider the “real market level” to be $370-375/mt CFR, which translates to a maximum of $340-345/mt FOB. “But Russian BPI [basic pig iron] shipments may be delayed [due to logistical issues in Russian Black Sea ports], so only LISCO HBI may be available to fill the gap,” a source said. Some market sources in Turkey reported the latest indications for ex-Russia HBI at $360-365/mt CFR, but again the price is said to be nominal because they can't find new vessels for shipment, a source said. In Turkey, some ex-Venezuela HBI has been priced at $370/mt CFR. Ex-Iran HBI can be booked at $250-255/mt FOB, but shipments are also risky.
Negotiations in Europe have been heard mainly at $380/mt CFR, though buyers insist on $375/mt CFR and below.
The SteelOrbis reference price for imported HBI in the Mediterranean has been settled at $370-380/mt CFR for now, considering the latest bids and negotiable levels. This is down from $385-400/mt CFR in early July.
