Iron ore concentrate prices witnessed a downward trend this week. SteelMint’s index for Fe 63% concentrate prices currently stands at around INR 5,400/tonne (t) exw, down INR 200/t, w-o-w. The drop in pellet and steel prices has lowered offers for iron ore concentrates.
Meanwhile, a deal of around 4,000 t was heard this week by a central-India-based pellet-maker which was taken into consideration in the T1 trade of the index.
Market participants are eagerly waiting for the next OMC auction scheduled on 19 May to get a better price clarity. Notably, the miner has decreased the base price for fines up to INR 800/t and for lump by up to INR 450/t as against the last auction on 18 April.
Factors weighing on iron ore concentrate prices-
- Falling pellet prices: SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 10,400/tonne (t) DAP Raipur on 17 May, edging down by around INR 100/t compared to the last assessment on 13 May. Raipur-based pellet-maker Godawari Power and Ispat kept offer stable at INR 11,100/t exw ($144/t). Other pellet-makers in Raipur offered Fe 63% grade at INR 10,700-10,800/t ($137-140/t) exw. Jharsuguda producers also cut pellet offers to around INR 9,500/t exw.
- Iron ore fines prices fall to three-month low: SteelMint’s weekly Odisha iron ore fines index (Fe 62%) fell by INR 100/t w-o-w to INR 5,550/t ex-mines. Low demand and falling pellet and sponge prices have put Odisha iron ore prices under pressure, bringing them down to a three-month low.
Outlook
Iron ore concentrate prices are likely to remain supported amid restocking ahead of the monsoon season. However, the OMC auction results may remain a deciding factor for buying prices of concentrates.
Leave a Reply