- Decent trades recorded amid stable pellet tags
- Buyers expect price cuts, but some sellers hold offers
Iron ore concentrate prices in Jabalpur remained unchanged w-o-w, amid stable pellet tags and decent trades. However, certain deals were heard concluded at lower offers as well.
BigMint’s weekly iron ore concentrate index was assessed at INR 4,600/tonne (t) ($53/t) exw-Jabalpur, stable against the previous assessment on 8 February.
Buyers expect price reductions, as they seek material at lower rates. However, certain sellers are reluctant to reduce their offers. Additionally, the market awaits (1) the February price announcement from the National Mineral Development Corporation (NMDC) and (2) the base price revision from the Odisha Mining Corporation (OMC) for its February auction.
“Offers have dropped amid low bids from buyers,” said a Jabalpur-based producer.
Meanwhile, another Jabalpur-based seller highlighted, “There has been no trade this week, as buyers are looking for significantly lower prices, but we are not willing to sell at those levels.”
Rationale
- Three (2) trades for 20,000 t were recorded in the publishing window, and all were taken into consideration, receiving 50% weightage.
- Eight (8) offers and indicative prices were reported, of which seven (7) were taken into consideration as T2 trades, which received the balance 50% weightage.
Raipur, Odisha pellet offers remain stable
The Raipur pellet market stayed stable, even as local steelmakers ramped up their procurement. Most transactions were driven by immediate needs and were primarily with local pellet producers, though some deals also involved suppliers from neighbouring regions. A recent rise in sponge iron and semi-finished steel prices boosted buyers’ confidence, resulting in a slight increase in trading activity over the past few days.
BigMint’s bi-weekly domestic pellet (Fe 63%) index remained stable at INR 9,800/t ($113/t) DAP Raipur on 11 February 2025 compared to the previous assessment on 7 February.
Additionally, Odisha’s iron ore market remained mostly stable this week, despite a boost in trading activity. The recent rise in domestic pellet prices, along with active export deals, sparked increased buying interest. There was a rise in inquiries from major buyers, contributing to a positive market sentiment.
Outlook
The market is expected to remain volatile, with limited transactions occurring amid bid-offer disparities. However, clarity is expected following NMDC’s and OMC’s iron ore price announcements, according to sources.
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