Iron ore concentrate prices saw an upward trend this week amid a sharp hike in pellets and iron ore prices. Moreover, prices have also picked up post results of recent auctions conducted by Odisha Mining Corporation (OMC).
SteelMint’s assessment for Fe63% concentrate prices currently stands at INR 4,000/tonne (t) exw, up by INR 200/t as against the last assessment on 17 December.
Meanwhile, one deal of 40,000 t was heard at INR 4,000/t exw this week which was taken into consideration in the T1 trade of the index as against no active deals reported on 17 December.
Reasons for hike in iron ore concentrate prices-
- PELLEX climbs to six-months high: SteelMint’s bi-weekly domestic pellets (Fe63%) index, PELLEX, stood at INR 9,250/t, up by INR 350/t compared to the last assessment on 16 December, 2022. With this, the Pellex reached a six-month high. The current level was last seen towards the end of May 2022.
- Odisha iron ore prices rise w-o-w: SteelMint’s weekly Odisha iron ore fines (Fe 62%) index has moved up by INR 150/t to INR 4,500/t ex-mines (including royalty, DMF, and NMET). Trade activities have picked up in recent auctions conducted by OMC and ESL this week. At Odisha Mining Corporation’s (OMC’s) iron ore fines auction yesterday, 1.15 mnt was put for auction, and 1.11 mnt or 97% of the total quantity received bids. The bid price for fines increased by up to INR 400/t against the last auction on 16 November. The tight availability of high-grade ore fines, lower inventories with mills, and supportive pellets offers in eastern India have made the auction a success.
Outlook
Iron ore concentrate prices are less likely to fall in the near-term owing to supportive iron ore market sentiments, especially post-export duty rollover, SteelMint understands.
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