India: Iron ore concentrate prices stay firm w-o-w, market awaits OMC’s auction outcome

• OMC lifts base prices for upcoming iron ore auction
• Conc. output drops amid EC expiry of certain mines

Iron ore concentrate prices in India’s Jabalpur remained stable w-o-w. Prices were supported by a hike in base prices at the upcoming iron ore auction from the Odisha Mining Corporation (OMC), along with supportive sentiments in the pellet and Odisha iron ore markets. At the same time, steel and sponge iron market sentiment also showed positive signals.

BigMint’s weekly iron ore concentrate index was assessed at around INR 4,700/tonne (t) ($54/t) exw-Jabalpur, stable w-o-w. Meanwhile, the market awaits OMC’s iron ore auction result, which is expected to provide greater clarity on future dynamics.

Notably, concentrate production has declined in recent times following the expiry of certain mines’ environmental clearances (ECs). “ECs have lapsed, which has led to a reduction in raw material production. This is reflected in the fact that concentrate production has dipped in recent times,” noted a Jabalpur-based seller.

Rationale

• Three (3) trades were recorded in the publishing window, and all were taken into consideration, receiving 50% weightage.
• Seven (7) offers and indicative prices were reported, of which six (6) were taken into consideration as T2 trades, which received the balance 50% weightage.

Factors supporting iron ore concentrate offers

• OMC lifts base prices for upcoming iron ore auction: OMC has scheduled an auction for 2.3 million tonnes (mnt) of iron ore (1.02 mnt of lumps and 1.28 mnt of fines) on 20 March 2025. The miner has increased base prices by INR 200-300/t ($2-3/t) and INR 750/t ($9/t) m-o-m for fines and lumps, respectively, against last month’s auction. The tight availability of high-grade ore amid fully utilised EC limits of certain small miners supported the base price hike.
• Raipur’s pellet offers rise: Raipur-based producers raised their offers for Fe 63% (+/-0.5%) pellets by INR 100-200/t ($1-2/t) to INR 9,900-10,000/t ($115-116/t) exw-Raipur on 19 March 2025. The recent increase in base prices for the upcoming OMC auction and improved market sentiments in the sponge and finished steel segments supported pellet prices in the Raipur region.
• Sponge PDRI prices increase: Sponge PDRI prices in Raipur increased by around INR 750/t ($9/t) w-o-w. The DGTR’s notification regarding the proposed safeguard duty led to positive sentiments among market participants. This optimism led suppliers to raise offers, and significant procurement was made at these higher values.

Outlook

Market participants are keeping a close watch on the steel, iron ore, and pellet markets, anticipating price stabilisation or an uptick that could boost overall sentiment. Until then, volatility is expected to persist, with limited transactions occurring as the fiscal year draws to a close. However, clarity on the market outlook is likely to emerge following the outcome of the upcoming OMC iron ore auction, as per sources.