Proposal to discontinue Venezuela HBI exports price assessment

Fastmarkets proposes to discontinue its price assessment for hot-briquetted iron (HBI) exports from Venezuela, due to the sharp decline in shipments caused by the longstanding crisis in the country’s ironmaking industry and the unlikely prospect of any improvement in the near future.

October 26, 2022

By Marina Shulga

The price assessment in question is MB-FE-0002 hot-briquetted iron export, fob main port Venezuela, $/tonne.

Venezuela was formerly the largest global exporter of HBI, with shipments of around 7 million tonnes in 2008, according to market participant estimates. That figure was close to the combined production capacity of all HBI producers in the country.

In 2021, however, HBI exports dropped below 500,000 tonnes, according to Fastmarkets’ calculations, based on data from the International Steel Statistics Bureau. The decline was the result of continuing disruption to raw material supplies; a lack of operating funds; insufficient gas and other energy supplies; and Venezuela’s general economic crisis.

Market participants have told Fastmarkets that the HBI industry in Venezuela is only likely to be recover if the political regime in the country changes – something that is not expected to happen any time soon.

The consultation period for the discontinuation of this price assessment starts on Wednesday October 26 and will end on Monday November 28, with changes taking place, subject to market feedback, from Thursday December 1.

To provide feedback on the proposal to discontinue this price assessment, or if you would like to provide price information by becoming a data submitter to this price, please contact Marina Shulga by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Marina Shulga, re: HBI, fob Venezuela.”

To see all Fastmarkets’ pricing methodology and specification documents, go to: https://www.fastmarkets.com/about-us/methodology.