Iron ore concentrate prices in the Jabalpur region have remained stable in the absence of fresh deals and pending order deliveries of previous ones. SteelMint’s assessment for Fe 63% concentrate stands at INR 4,600/tonne (t)-exw.
Inquiries are coming in from suppliers for the material. But, due to pending delivery and limited availability, some suppliers increased their offers for concentrates to INR 4,800-5,000/t exw. However, no new deals have been heard this week at such increased offers. Buyers are expecting prices to gain clarity in the first week of March, after the delivery of the old orders.
SteelMint’s weekly Odisha iron ore fines index (Fe 62%) remained stable w-o-w at INR 5,900/t ex-mines. OMC’s iron ore auction held last week received a good response, with bids received being higher by INR 750-1,650/t against last month’s auction.
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 concentrates annually. Chhattisgarh consumes 40% of the total production, Maharashtra 40% and Rajasthan 15%. Procurement also happens from Odisha occasionally.
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