Orders for Venezuela's hot-briquetted iron have been sparse so far in January, leaving offers at the same as year-end levels, sources said Thursday.
Venezuela HBI continues to sell for early-January bookings at $180-$210/mt FOB Venezuelan ports, with a midpoint at $195/mt FOB of bids, offers and deals. The last price change occurred in November, when the price fell from $220-$240/mt FOB Venezuelan ports.
A Peruvian trader said 50,000 mt of HBI was offered at $180/mt FOB Palua Port in Venezuela. "The destination is probably the US as its economy has regained momentum," he said.
An American trader offered 20,000 mt at $180-$190/mt FOB, with the US most likely the destination. Another 25,000 mt cargo was offered for European delivery at $190/mt FOB.
A Venezuelan supplier reported offering 35,000 mt at $200/mt FOB, while a Venezuelan trader offered 30,000 mt at $210/mt FOB, neither disclosed the destination.
A 120,000 mt HBI cargo was offered to the US at $200/mt FOB, with another supplier offering 40,000 mt at $210/mt during the week.
A Venezuelan trader was heard trying to export HBI at $230/mt FOB, with 30-day delivery. Other Venezuelan traders were seen offering 30,000 mt at $250/mt FOB -- the highest offers seen in this market during the first week of 2016.
But a Chinese trader continued to offer $400/mt FOB domestically and an American trader also rolled its price at $400/mt FOB, saying "the risk is big when you deal with Venezuela."
Venezuela has HBI installed capacity of 6.9 million mt/year, but has seen reduced production in recent years, mainly due to a lack of pellets.
