India: Iron ore concentrate prices inch up w-o-w in recent trade

• Material shortage leads to lower output
• Trades conclude at higher offers

This week, iron ore concentrate prices in Jabalpur, central India, saw a w-o-w uptick, driven by deals concluding at higher offers from certain sellers. Sources told BigMint that the exhaustion of mines limit towards the fiscal year-end, leading to a shortage of raw materials and lower production levels, coupled with supportive sentiments in the pellet and Odisha iron ore markets, contributed to the rise in prices.

BigMint’s bi-weekly iron ore concentrate index stood at INR 4,700/tonne (t) ($54/t) exw-Jabalpur, up by INR 100/t ($1/t), w-o-w.

Moreover, the market is keenly awaiting NMDC’s iron ore price revision, sources informed BigMint.

Rationale:

• Two (2) trades of 150,000 t were recorded in this publishing window and were considered under T1 trade, and hence, were accorded 50% weightage.
• Seven (7) offers and indicative prices were reported, out of which six (6) were taken into consideration as T2 trades, which received 50% weightage.

Factors supporting iron ore concentrate prices:

• Pellet prices stay supported amid decent trades: Pellet prices in Raipur remained stable at the start of the week, buoyed by active transactions and the recent rise in sponge iron and semi-finished steel prices. Market participants noted moderate buying interest, as many had already secured materials in the previous weeks and were now waiting for deliveries. BigMint’s bi-weekly domestic pellet (Fe 63%) index remained stable at INR 9,850/t ($113/t) DAP Raipur on 4 March 2025 compared to the previous assessment on 28 February. Sellers in Raipur have maintained their offers, with a few transactions also being reported from Odisha, primarily driven by cost advantage.
• Sponge PDRI prices rise w-o-w: BigMint’s daily sponge PDRI index witnessed an increase of around INR 400/t ($5/t) w-o-w to INR 25,400/t ($292/t) exw-Raipur amid moderate trading.
• Odisha iron ore prices up w-o-w amid tight material availability: Iron ore prices in Odisha stayed strong this week, driven by a tight supply as many miners have reached their Environmental Clearance (EC) extraction limits. Additionally, pending advance bookings for dispatches have yet to be fulfilled, further restricting market availability. BigMint’s Odisha iron ore fines (Fe 62%) index increased by INR 50/t ($1/t) w-o-w to INR 5,050/t ($58/t) ex-mines on 1 March 2025.

Outlook

Iron ore prices are expected to remain stable in the near term, as sellers are reluctant to lower their offers due to material shortages and the approaching fiscal year-end. However, market clarity is anticipated to improve after NMDC’s upcoming revision of iron ore prices, according to industry sources.