- Active response in OMC auction, NMDC price hike support offers
- Sellers expect further hike in offers later this week
Iron ore concentrate prices in Jabalpur, central India, remained supported this week. Active response in OMC’s recent iron ore auction followed by upward correction in Odisha iron ore prices have supported concentrate prices. Meanwhile, NMDC’s recent iron ore price hike announcement has also kept offers supported, BigMint noted.
BigMint’s bi-weekly index for Fe 63% concentrate currently stood at INR 5,700/t ($69/t) exw, stable, w-o-w.
“We are expecting prices to rise in the near-term followed by OMC iron ore auction results and NMDC’s price hike announcement. However, currently have not opened new offers as we are completing previous orders,” mentioned a Jabalpur-based seller.
Rationale:
- One (1) trade of 12,000 t was recorded in this publishing window and was accorded with 50% weightage.
- Nine (9) offers, bid and indicative prices were reported and all were taken into consideration as T2 trades, receiving 50% weightage.
Factors supporting concentrate prices:
- NMDC’s iron ore price hike announcement: NMDC, increased list prices of iron ore today, BigMint learnt from reliable sources. The company has increased prices of DR-CLO by INR 300/t ($4/t) and fines by INR 400/t ($5/t), effective from 24 January, 2024. The miner fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 7,220/t ($87/t) and those of iron ore fines (-10 mm, Fe 64%) at INR 5,310/t ($64/t). Prices are on FOR basis from Bacheli complex and include royalty, DMF and NMET charges.
- Active response in OMC iron ore auction: OMC conducted an auction for 1.524 mnt of iron ore fines (Fe 54-65%) on 19 January, 2024. Buyers participated actively, and the entire quantity of fines (except a 1,000 t lot) was booked. Notably, bids for fines increased by INR 100-1,000/t ($1-12/t) against bid prices seen in the December, 2023 auction for a majority of the lots.
- Raipur pellet offers rise by INR 300/t: A major pellet plant from Raipur region raised its pellet offers by INR 300/t ($4/t) to INR 9,700-9,800/t ($117-118/t) exw today following NMDC’s price revision.
Outlook
Iron ore concentrate prices are expected to inch up followed by hike in NMDC iron ore prices and pellet offers.