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Metals & Recycled Scrap
All Iron Ore & DRI

DRI & HBI (Direct Reduced Iron)

Hot briquetted iron and DRI by metallisation, carbon and gangue for EAF melt shops

Direct reduced iron is iron ore reduced to metallic iron in a natural gas shaft or coal-fired rotary kiln without melting, bought as a clean chemistry sheet to dilute tramp residuals in steelmaking. Metallisation (the share of total iron present as metallic Fe, 92–95% for gas-based shaft HBI, 85–90% for coal-based rotary-kiln sponge iron) sets the furnace yield; total Fe runs 90.5–93.0% and metallic Fe 83.5–88.0%; carbon (1.0–2.0% for gas-based HBI) adds chemical energy to the electric-arc furnace bath and helps foam the slag; while gangue (SiO₂ + Al₂O₃, typically 2.8–4.0%) is slag the furnace must melt. EU buyers require documented non-sanctioned origin on every DRI and HBI cargo, and European melt shops that once relied on sanctioned-origin HBI now buy from other origins.

CBIL brokers non-sanctioned DRI and HBI from gas-based plants on the US Gulf (Corpus Christi), in Malaysia and in Oman (Sohar), and coal-based sponge iron from India for induction and EAF feed. Availability from Oman is confirmed cargo by cargo. Under the EU Carbon Border Adjustment Mechanism, gas-based DRI and HBI carry a lower carbon intensity than blast-furnace iron, which matters to European importers; the emissions figure for each cargo comes from the producer's own installation data. The physical carriage form is paramount under the IMSBC Code: HBI is compacted hot into high-density briquettes and carried under schedule DRI (A), in ordinary dry bulk holds with surface ventilation. Cold-moulded DRI pellets and lump are porous DRI (B), which react with water and air to generate heat and hydrogen and must be carried under a continuous inert-gas (nitrogen) blanket; DRI fines by-product ships under DRI (C). Because CBIL also operates a chartering desk (LaycanDesk), ocean fixtures are checked against the applicable IMSBC schedule before the vessel is fixed.

Need the ship as well? Our chartering desk prices Chattogram to Vietnam mill scale freight on LaycanDesk.

Excluded origins are not offered, including product re-exported, blended or re-processed through a third country. Every lot moves with a certificate of origin naming the producing plant, mine or grower country, and nothing is quoted before the seller and loading point are known.

Indicative reference

$340–420 USD / MT

as at September 2026

IncotermsFOB · CFR · CIF
OriginsUSA (Corpus Christi), Malaysia, India, Oman (Sohar)
PackagingBulk vessel (Handysize / Supramax / Panamax); HBI in open bulk holds under IMSBC DRI (A); cold DRI under continuous N₂ inert gas as IMSBC DRI (B)
HS Code7203.10

Reference level only — not an offer, and reviewed quarterly. Levels shown are as at September 2026. Firm pricing is quoted per RFQ, subject to volume, terms and inspection.

USA (Corpus Christi) · Malaysia · India · Oman (Sohar)

Typical Specification

Metallisation92.0–95.0% gas-based / 85–90% coal-based
Total Fe (Fe_tot)≥ 90.5–93.0%
Metallic Fe (Fe_met)≥ 83.5–88.0%
Carbon1.0–2.0% gas-based / ≤ 0.2% coal-based
Gangue (SiO₂ + Al₂O₃)≤ 2.8–4.0% (by plant and pellet feed)
Briquette Density (HBI)≥ 5.0 g/cm³ (apparent density, IMSBC DRI (A))

Specifications are indicative and adjusted to the agreed contract and destination requirements. Final spec confirmed on COA / SGS.

Available Grades

Hot Briquetted Iron (HBI) 92–95% metallisation (gas-based)Low-Gangue Premium HBI (SiO₂ + Al₂O₃ ≤ 3.2%)HBI Fines / Briquette Screenings 0–6.35 mmGas-Based Cold DRI Pellets 92–94% metallisation (N₂ blanketed)Coal-Based Sponge Iron 85–90% metallisation (induction feed)

Applications

  • Electric-arc furnace charge (low-residual automotive & wire rod)
  • Basic oxygen converter metallic coolant / scrap replacement
  • Blast-furnace burden supplement (coke rate reduction)
  • Induction furnace clean metallic charge

Category

Metals & Recycled Scrap

Incoterms

FOB · CFR · CIF

Pricing basis

USD / MT

Inspection

SGS / Intertek at load port

DRI & HBI (Direct Reduced Iron) — buyer questions

Can European melt shops still buy sanctioned-origin DRI or HBI?

EU buyers require documented non-sanctioned origin on DRI and HBI (CN 7203), and European EAF steelmakers that historically bought sanctioned-origin HBI now source gas-based HBI and DRI elsewhere. CBIL works non-sanctioned producers, and each cargo carries origin documentation from the ore and plant through to the bill of lading, plus the producer's installation emissions data for CBAM reporting.

What is the critical maritime difference between HBI and cold DRI under the IMSBC Code?

Density and reactivity. Cold direct reduced iron consists of porous pellets or lump with a large internal surface area that reacts with air and moisture to produce heat and flammable hydrogen gas (H₂); it ships under IMSBC schedule DRI (B), which requires the holds to be kept under a continuous inert-gas (nitrogen) blanket, and many shipowners decline it. Hot Briquetted Iron (HBI) is fresh DRI compacted hot into briquettes with an apparent density ≥ 5.0 g/cm³, closing most of the pores. HBI ships under schedule DRI (A): it can go in conventional bulk carriers with surface ventilation and be fixed on normal dry bulk terms. DRI fines by-product is a separate schedule, DRI (C).

Why is natural gas-based HBI advantageous under EU CBAM?

Iron and steel products, including DRI and HBI under CN 7203, fall within the EU Carbon Border Adjustment Mechanism. Gas-based shaft reduction has a lower carbon intensity than blast-furnace ironmaking, so gas-based HBI generally carries lower embedded emissions than pig iron. The actual figure for each cargo comes from the producer's own installation data, which CBIL requests before a European sale.

How does HBI compare against merchant pig iron and prime scrap in the EAF?

All three provide virgin metallic dilution against scrap tramp residuals (copper and tin). Pig iron brings around 4% carbon, which provides intensive chemical energy in the bath. HBI brings 1.0–2.0% carbon and more gangue (2.8–4.0% SiO₂+Al₂O₃), but offers uniform sizing, free-flowing charging and lower embedded emissions. The blend of HBI, pig iron and scrap is set by each melt shop for its heat times, slag practice and product grade.

What parcel sizes and load ports do you work?

Handysize (25–35,000 MT), Supramax (45–55,000 MT) and Panamax (60–75,000 MT) bulk vessels out of the US Gulf (Corpus Christi), Malaysia, Indian ports, and Sohar (Oman), on FOB, CFR and CIF terms. CBIL's chartering desk (LaycanDesk) manages the laycan and checks charterparty terms against the applicable IMSBC DRI schedule.