- Iron ore prices in Odisha remain firm
- Market awaits NMDC price revision
Iron ore concentrate prices in Jabalpur, India, increased by INR 100/tonne (t) ($1/t) w-o-w from the previous assessment on 19 April 2025, with BigMint’s bi-weekly index for the same assessed at INR 4,800/t ($56/t) exw Jabalpur.
Prices increased, as some players quoted higher offers. While some trades took place at the higher values, deals were not concluded at offers around or above INR 5,000/t. A major buyer was heard to have bid INR 4,600/t exw recently.
Prices remained supported due to (1) a hike in base prices by the Odisha Mining Corporation (OMC) for its recent auction and (2) supportive sentiments from the Odisha iron ore market. However, a subdued domestic pellet market and the lukewarm response to OMC’s iron ore auction raised concerns among market participants. The market also lay in wait for revised prices from the National Mineral Development Corporation (NMDC).
A major seller from the region informed BigMint, “Offers largely remain unchanged, given the OMC auction response was below expectations. Similarly, NMDC has not revised its prices.”
On the contrary, another seller noted, “We have quoted higher offers following the OMC auction but are yet to receive inquiries and close deals at the current levels.”
Rationale
- Three (3) trades for a total of 55,000 t were recorded in the publishing window and were accorded 50% weightage.
- Nine (9) offers and indicative prices were reported, out of which eight (8) were taken into consideration as T2 trades, receiving the balance 50% weightage.
Factors supporting concentrate prices
- OMC hikes base prices for April iron ore auction: OMC held an auction for 2.676 million tonnes (mnt) of iron ore (1.141 mnt of lumps and 1.535 mnt of fines) on 19 April 2025. The miner increased base prices by INR 100/t ($1/t) and INR 350/t ($4/t) m-o-m for fines and lumps, respectively, driven by limited availability of high-grade iron ore in the region and a m-o-m rise in sponge iron prices.
- Odisha iron ore fines index up by INR 50/t ($0.5/t) w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index inched up by INR 50/t ($0.5/t) w-o-w to INR 5,250/t ($62/t) ex-mines on 19 April. Iron ore prices in the eastern region remained firm, buoyed by active trading and steady demand from buyers. According to sources, miners maintained stable offers and concluded deals for decent volumes. Furthermore, OMC’s announcement of a base price hike added to market sentiment, lending additional support to iron ore prices.
Why are concentrate prices facing downward pressure?
- OMC’s iron ore fines auction impacted by sluggish export market: In OMC’s auction for 1.535 mnt of iron ore fines (Fe 51-65%) on 19 April 2025, 1.149 mnt (75% of the offered quantity) were booked at INR 4,150-5,550/t ($49-65/t) ex-mines. Although weighted average bids remained stable m-o-m, lower-grade fines saw muted interest due to sluggish export market conditions.
- Raipur-based pellet producers cut offers by INR 200/t ($2/t): Raipur-based pellet producers recently reduced their offers for Fe 63% (+/- 0.5%) material by INR 200/t ($2/t) to INR 9,900-10,100/t ($116-118/t) exw. Weak market sentiments following the OMC iron ore auction and a steady decline in sponge and semi-finished prices led to a drop in pellet offers. Sponge PDRI tags dropped by INR 350/t ($4/t) w-o-w to INR 25,450/t ($298/t) exw on 23 April 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 sentiments. Until then, the market is expected to exhibit volatility, with limited transactions taking place. Further clarity is expected following NMDC’s iron ore price announcements, according to sources.
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