Iron ore concentrate prices in central India’s Jabalpur region increased this week amid rising prices of pellets and iron ore prices in Odisha.
SteelMint’s index for Fe 63% concentrate prices currently stands at around INR 2,800/tonne (t) exw, increasing by around INR 200/t as against the previous assessment on 9 July, 2022. Some offers at higher levels of INR 3,000/t exw were also heard in the market today.
Meanwhile, deals of around 68,000 t were heard this week, mostly by central- and eastern India-based pellet-makers, which were taken into consideration in the T1 trade of the index.
“Iron ore concentrate prices have increased despite NMDC’s price reduction mainly due to the recent hike in pellet prices”, a western India-based buyer told SteelMint.
Factors supporting concentrate prices-
- Rise in pellet prices: SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,800/t DAP Raipur on 12 July 2022, up by around INR 300/t compared to the last assessment on 8 July. Amidst a hike in sponge iron prices, tightening of iron ore supplies amidst monsoons and lower raw material inventories, sponge iron producers remained active in securing pellet supplies.
- Iron ore prices edge up: SteelMint’s weekly Odisha iron ore fines index (Fe 62%) moved up by INR 300/t w-o-w to INR 3,500/t ex-mines as assessed on 09 Jul’22. The hike in pellet and sponge iron prices led to the hike in iron ore offers. Also, with the monsoons approaching, material availability is likely to remain tight.
- Seasonal factors: With monsoons approaching, iron ore availability in India may remain tight which may support ore concentrate prices in the near term.
Outlook
Iron ore concentrate prices are likely to remain supported due to the approaching monsoon and significant recovery in pellet and iron ore prices.
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