Hot briquetted iron (HBI) appears to be in demand – and a highly touted Corpus Christi plant that will produce it is not even up and running yet.
Austrian steelmaker Voestalpine will being producing 2 million tons of HBI after a EUR 550 million investment, according to a press release. “There is significant interest from potential customers in the sponge iron produced at the plant,” the release stated. “From 2016 onwards, Altos Hornos de Mexico (AHMSA), Mexico’s largest steel manufacturer, will source several hundred thousand tons of high quality HBI from the new Voestalpine location annually.”
Current Steel and Raw Materials Prices
Chinese steel prices were flat for the day. Iron ore 58% fines from India hit a new high price on the day. Chinese HRC saw little change in its price on Tuesday. The price of Chinese coking coal saw little movement.
Also on the LME, the steel billet cash price remained essentially flat at $125.00 per metric ton. After a couple of days of decreasing prices on the LME, the 3-month price of steel billet held steady at $150.00.
The US HRC futures contract 3-month price saw little movement on Tuesday at $600.00 per short ton. The US HRC futures contract spot price saw essentially no change for the fifth day in a row, remaining around $578.00 per short ton.