As a result of the decline in global raw materials, Venezuelan HBI offers for export are heard trending down. On June 6, SteelOrbis reported offers heard at $200-220/mt FOB (Palua port) with expectations of deals in the $195-210/mt FOB range with US deals likely between $200-210/mt FOB.
According to sources, offer prices have slid down to $185-205/mt FOB. The new price range reflects a decline of $15/mt on the previous offer range.
Due to economic and delivery risks, dealer margin, and freight costs, the spread between FOB Venezuelan port and CFR US port in a recent May deal was approximately $40-50/mt. The latest May deal was heard at $260-265/mt CFR Alabama port. A source noted that upcoming deals through the summer will most likely reflect a $15-20/mt decline in CFR terms from the May deal.