India: Iron ore concentrate prices remain stable, trade muted

Iron ore concentrate prices in Jabalpur, central India, remained unchanged this week due to stability in pellet prices and the ongoing monsoon season.

SteelMint’s index for Fe 63% concentrate prices currently stands at around INR 2,900/tonne (t) exw, stable as against the last assessment on 6 August. Some offers were also heard higher at INR 3,500/t exw and at lower levels of INR 2,800/t exw.

Factors helping players to hold iron ore concentrate offers:

• Pellet prices remain stable: SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 9,200/tonne (t) DAP Raipur on 5 August, 2022, stable compared to the last assessment on 9 August. No deal was concluded this week so far as buyers held back purchases on falling sponge iron prices. As per sources, buyers were silent due to high offers and volatility in the market.
• Seasonal factors: During the monsoon season, iron ore availability in India remains tight. This could be supporting iron ore concentrate prices.

Outlook

Iron ore concentrate prices are likely to remain supported in the near term due to the monsoon and stability in pellet prices.