S&P Global Commodity Insights clarifies Venezuelan HBI FOB assessment

S&P Global Commodity Insights would like to provide clarification regarding pricing data related to the weekly Platts Venezuelan hot-briquette-iron (HBI) FOB assessment.

S&P Global has assessed HBI export pricing unchanged at $265/mt since January 2021. In the absence of verifiable bids, offers and trades and other relevant data points, the assessment takes direction from a fixed-price mechanism implemented by government authorities, in which a $260-$265/mt FOB fixed range is considered for standard quality cargoes at 88.3% Fe content.

Venezuelas HBI production was sporadic for parts of both 2019 and 2020, amid disruptions to raw material and energy supplies, as well as an economic crisis aggravated by the imposition of US sanctions on its national oil sector in 2019. Spot trading has remained limited, with significant periods of illiquidity stretching back to late 2020.

In September 2021, Venezuelas government announced the gradual resumption of its metals industry, including HBI production, but repeatable bids, offers, indicative values and trades have been limited. Platts has maintained the assessment, while continuing to monitor market activity as global supply and trade flows evolve.

The assessment is published at Steel Markets Daily, Platts DimensionsPro and fixed pages PMA(3955), STL(3955) under the SB01116 data code.

Please send any feedback, comments or questions about this clarification to latammetalsteam@spglobal.com and pricegroup@spglobal.com.