Metals & Mining Theme, Ferrous

December 18, 2024

Platts proposes launching Mediterranean hot-briquetted iron import price assessment

Platts, part of S&P Global Commodity Insights, proposes to launch a daily hot-briquetted iron (HBI) spot price assessment on a CFR Mediterranean basis, effective Jan. 27.

The proposal reflects the growing role of HBI in steel industry decarbonization efforts and the relevance of the Mediterranean region as one of the major importers of seaborne HBI, with Southern Europe and Turkey importing more than 1.5 million mt/year according to the World Steel Association.

With European mills planning to increase production via electric arc furnaces to limit CO2 emissions, HBI demand is expected to grow further.

The proposed assessment would have the following specifications:

Assessment Type Published Quality Quantity Dimensions Incoterms Location Timing Payment UOM
Platts Hot-Briquetted Iron CFR Mediterranean Assessment Daily 92%-94% Metallization, minimum 90% Fe total, 0.8%-1.6% Carbon, 0.001%-0.03% Sulfur, >5 mt per cu m density 5,000 mt to 30,000 mt L 90-140, W 48-58, T 32-34 mm CFR Italy, Spain, Portugal and Turkey Delivery up to eight weeks Net 30-60 days after delivery USD/mt

The proposed assessment would reflect spot prices for HBI delivered to Italy, Spain, Portugal and Turkey. Platts may also consider seaborne HBI imports into Rotterdam or other European ports meeting the stated specifications, by normalizing to a CFR Mediterranean basis.

Freight rate, differential and adjustment information reported by market participants would be published as real-time headlines, or heards, for wider market testing.

The assessment would reflect a 4.30 pm London timestamp and follow the London holiday calendar.

Platts would also publish a monthly average calculation.

Platts assessments consider market information reported to Platts and published through the day, including firm bids and offers, transactions and indications, as well as any other information deemed relevant to the assessment process.

Full description of the Platts assessments methodology can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Platts-Assessments-Methodology-Guide.pdf

The assessment and the associated monthly average would be published on a fixed page of the real-time Platts Steel Alert and Platts Metals Alert, in SBB Steel Markets Daily and in the Platts price database.

Platts invites feedback , comments and questions on this proposal to ferrous_EMEA@spglobal.com and pricegroup@spglobal.com by Jan. 16 .

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.