India: Iron ore concentrate prices remain stable in recent deals

• Buyers expect price cuts but some sellers hold offers
• Market awaits NMDC price revision

Iron ore concentrate prices in Jabalpur remained unchanged w-o-w, amid increase in Odisha iron ore prices and stable pellet tags. However, the recent National Mineral Development Corporation Ltd’s (NMDC) iron ore auction from Chhattisgarh witnessed decent response, raising concerns among market players.

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 22 February.

Buyers are anticipating price reductions, hoping to secure materials at lower rates. However, some sellers are reluctant to lower their offers.

Meanwhile, the market is waiting for the upcoming iron ore price announcement from NMDC for clarity on future pricing.

“We are keeping our offers on hold, awaiting NMDC’s price revision”, said a Jabalpur-based seller.

Meanwhile, a major concentrate buyer commented, “There have been no new trades. Sellers are unwilling to reduce their offers. While prices haven’t increased, OMC has somewhat supported the current offers”.

Rationale

• One (1) trade of 10,000 t was recorded in the publishing window, and was taken into consideration, receiving 50% weightage.
• Seven (7) offers and indicative prices were reported, of which five (5) were taken into consideration as T2 trades, which received the balance 50% weightage.

Market highlights

• Odisha iron ore prices rise w-o-w post OMC auction: Iron ore fines prices in Odisha have remained steady, supported by the recent Odisha Mining Corporation (OMC) auction, while lump prices have largely remained stable. Market participants are anticipating a clearer price trend once major miners revise their offers. BigMint’s Odisha iron ore fines (Fe 62%) index increased by INR 150/t ($2/t) w-o-w to INR 5,000/t ($57/t) ex-mines on 22 February. The recent OMC auction experienced a premium for fines, fuelled by higher demand and a scarcity of higher-grade material.
• NMDC CG iron ore auction sees decent response: NMDC auctioned around 358,300 t iron ore from Chhattisgarh on 25 February. The entire 34,400 t DRCLO (10-40 mm, Fe 67%) offered was booked at the base price of INR 7,130/t ($82/t) from Bacheli mines. Further, entire 10,000 t of Baila-sized lumps (10-20 mm, Fe 65.5%) received 1.7% premium over the base price of INR 6,500/t ($75/t) while 193,500 t fines (Fe 64%) remained unsold. 120,400 t ROM (10-150 mm, Fe 65.5%) from the miner’s Kirandul mines also failed to fetch bids. Prices mentioned are on FOR, ex-stockpile/mines basis, including royalty.
• Pellet prices remain stable: Pellet prices in Raipur remained steady this week, despite a slight increase in Odisha pellet prices. The rise in Odisha pellet prices was driven by higher bids in the recent OMC auction and positive market sentiments from the sponge iron and semi-finished steel sectors. However, trading activity in Raipur is yet to pick up, as buyers remain cautious. BigMint’s bi-weekly domestic pellet (Fe 63%) index remained stable at INR 9,800/t ($113/t) DAP Raipur on 25 February 2025 compared to the previous assessment on 21 February.

Outlook

The market is expected to remain volatile, with limited transactions occurring amid bid-offer disparities. However, clarity is expected following NMDC’s iron ore price announcements, according to sources.