Metals & Mining Theme, Ferrous

January 20, 2025

Platts to launch Mediterranean hot-briquetted iron import price assessment

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

The new assessment will reflect 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.

Platts first proposed the launch on Dec. 18, 2024, in a subscriber note available here(opens in a new tab).

Following feedback gathered from market participants in response to the proposal, Platts has revised the specifications for the new assessment. The changes are:

  • Adding Fe metallic range of 83%-85%
  • Adding fines and chips quality specification of below 5%
  • Narrowing the quantity range to 15,000-30,000 mt
  • Removing dimensions

The assessment will have the following specifications:

Assessment Type Published Daily Symbol Monthly Average Quality Quantity Incoterms Location Timing Payment UOM
Platts Hot-Briquetted Iron CFR Mediterranean Assessment Daily AHBIA00 AHBIA03 92%-94% Metallization, minimum 90% Fe total, 83%-85% Fe metallic, 0.8%-1.6% Carbon, 0.001%-0.03% Sulfur, >5 mt per cu m density, <5% fines and chips 15,000 mt to 30,000 mt CFR Italy, Spain, Portugal and Turkey Delivery up to eight weeks Net 30-60 days after delivery USD/mt

The assessment will reflect spot prices for HBI delivered to Italy, Spain, Portugal and Turkey. Platts may consider seaborne HBI imports into Rotterdam or other European ports that meet the stated specifications by normalizing to a CFR Mediterranean basis. Platts may also consider and normalize data that differs from the specifications stated above using price differentials prevailing in the spot market.

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

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.

In the absence of data, as per Platts assessment methodology, Platts may refer to the effect of movements in related markets, such as the ferrous scrap, pig iron or iron ore pellet markets.

A full description of the Platts assessments methodology can be found here(opens in a new tab).

The assessment will reflect a 4:30 pm London timestamp and follow the London holiday calendar.

Platts will also publish a monthly average calculation. The first monthly average calculations will update on March 1, reflecting the average of daily assessments published throughout February.

The assessment and the associated monthly average will be published on fixed pages PMA0580 and STL0580 of the real-time Platts Steel Alerts and Platts Metals Alerts, in SBB Steel Markets Daily and in the Platts price database.

Please send feedback, comments and questions to ferrous_EMEA@spglobal.com and pricegroup@spglobal.com.

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.