Iron ore concentrate prices in Jabalpur, central India, remained stable this week amid stability in Odisha iron ore prices. However, trades are yet to pick up.
SteelMint’s index for Fe63% concentrate currently stands at INR 5,400/tonne (t) exw, stable as against the last assessment on 18 March. Some offers were heard at a higher level of INR 5,700/t exw, although no deal was reported.
Two deals were heard of which only one deal of 12,000 t, which was concluded at INR 5,300/t exw, was taken into consideration as T1 trade for index calculation and given 50% weightage. Four (4) firm offers and indicative prices were reported, and all of them were taken into consideration in T2 and accorded the balance 50% weightage.
Stability in Odisha iron ore prices has lent support to iron ore concentrate prices, SteelMint understands. SteelMint’s weekly Odisha iron ore fines (Fe62%) index remained stable at INR 5,700/t ex-mines.
Apart from the auction conducted by the state-owned miner, Odisha Mining Corporation (OMC), not many trades were heard. Owing to the exhaustion of EC limits, production remains impaired from many mines, which has kept iron ore offers firm from miners in Odisha.
However, the drop in sponge iron prices kept iron ore trade subdued. Also, SteelMint’s domestic pellet index has hit a two-month low of INR 9,700/t DAP Raipur – levels last seen in mid-January.
Outlook
Iron ore concentrate prices are expected to remain supported in the near term. However, the deciding factor may be the movement of iron ore and pellets prices.
Leave a Reply