India: Iron ore concentrate prices remain firm w-o-w; market awaits OMC auction results

• OMC raises base prices of fines in auction
• Pellet, Odisha iron ore prices remain firm

Iron ore concentrate prices in Jabalpur remained stable w-o-w, supported by a recently concluded deal. Favourable sentiments in the pellet and Odisha iron ore markets also helped prop up concentrate prices. However, weak steel market sentiments continued to raise concern.

BigMint’s weekly iron ore concentrate index was assessed at around INR 4,600/tonne (t) ($53/t) exw-Jabalpur, stable against the previous assessment on 15 February 2025.

Meanwhile, the market awaits the outcome of the iron ore auctions from the Odisha Mining Corporation Limited (OMC), which is expected to provide greater clarity on future dynamics. Compounding the uncertainty, the NMDC iron ore price revision is still pending, sources informed BigMint.

“Things will become clearer after the OMC auction and NMDC’s price revision,” highlighted a Jabalpur-based seller.

OMC has scheduled an auction for 2.617 million tonnes (mnt) of iron ore (1.098 mnt of lumps and 1.519 mnt of fines) on 19 February 2025, i.e. today. The miner increased base prices by INR 200-300/t ($2-3/t) and INR 150/t ($2/t) for fines and lumps, respectively, and INR 850/t ($10/t) for Fe 55% fines. A hike in pellet prices, tight availability of high-grade ore, and rising export tags supported the increase in base prices.

“Offers are unlikely to decrease, as sellers are unwilling to reduce their tags, given that OMC is expected to raise prices again. Additionally, the availability of the Fe 63% grade is declining in the region. The new benchmark is now Fe 62/62.5%,” said a major concentrate buyer.

Rationale

• Two (2) trades were recorded in the publishing window, of which only one (1) was taken into consideration, receiving 50% weightage.
• Seven (7) offers and indicative prices were reported, out of which five (5) were taken into consideration as T2 trades, which received the balance 50% weightage.

Meanwhile, pellet prices in the Raipur region remained stable over the past few days amid need-based demand from steelmakers. However, a decline of about INR 300-400/t ($3-5/t) in sponge iron and billet prices pressured the market. BigMint’s bi-weekly domestic pellet (Fe 63%) index remained unchanged at INR 9,800/t ($113/t) DAP Raipur on 18 February compared to the previous assessment on 14 February.

On the other hand, Odisha’s iron ore prices also remained stable last week, as trade activities slowed down ahead of the OMC auction. BigMint’s Odisha iron ore fines (Fe 62%) index inched up by INR 50/t ($1/t) w-o-w to INR 4,850/t ($56/t) ex-mines on 15 February 2025.

Outlook

Market participants are closely monitoring the steel, iron ore, and pellet markets, hoping for price stabilisation or an uptick that could improve overall market sentiments. Until then, the market is expected to exhibit volatility, with limited transactions taking place. However, the market outlook is expected to become clearer following OMC’s iron ore auction, as per a few sources.