Iron ore concentrate prices in the Jabalpur region remained stable on weekly basis. SteelMint’s assessment for Fe 63% concentrate prices stands at INR 6,250/tonne (t) exw. However, some deals of around 20,000 t were heard this week for buyers based in central and western India. A few offers were even heard at the lower side of INR 6,000/t exw.
Factors keeping iron ore concentrate offers under pressure-
- Weak demand for pellets: Demand for pellets is weaker as buyers did not show any interest at current offers. There remained a disparity between bid and offer. SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 12,300/t DAP Raipur on 5 April 2022, down INR 700/t compared to the last assessment on 1 April 2022.
- Iron ore prices inch down: SteelMint’s weekly Odisha iron ore fines index (Fe 62%) edged down further by INR 150/t w-o-w to INR 6,000/t ex-mines. The drop in pellets prices and the recent decline in sponge iron prices kept a majority of buyers away from making fresh bookings for iron ore.
Outlook
In view of increasing demand for iron ore concentrates in the last few years, several plants including Pacific Iron, Geomin and Jakhodia Minerals are planning to expand their existing capacity. Some greenfield projects are also in the pipeline.
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