Iron ore concentrate offers in India have continued to strengthen on active demand and limited offers from key players. SteelMint’s assessment for Fe63% concentrate price stands at INR 4,600/tonne (t) exw, up by INR 100/t w-o-w. The concentrate players received substantial orders in the last month and first week of this month due to pending delivery and limited availability of the material. Suppliers increased their offers for concentrates to INR 4,700-4,800/t exw.
Notably, SteelMint’s weekly Odisha iron ore fines index (Fe62%) was at INR 5,900/t ex-mine last week, rising by INR 500/t w-o-w. OMC, in its iron ore fines auction, which was scheduled today, raised the base price by INR 400-1,000/t (13-35%) against the last auction on 15 Jan’22.
However, domestic pellet prices witnessed a correction early this week amidst decline in sponge prices and steep drop in global iron ore prices and futures.
Outlook
In view of the increasing demand for iron ore concentrate in the last few years, several plants are planning to expand their existing capacity. These include Pacific Iron, Geomin and Jakhodia Minerals. Some greenfield projects are also being planned. The Jabalpur region produces 1.80-1.90 mnt of iron ore concentrate annually. Chhattisgarh consumes 40% of the total production, Maharashtra 40% and Rajasthan 15%. Procurement also happens from Odisha occasionally.
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