India: Iron ore concentrate tags remain flat despite market volatility

• Volatile pellet, sponge iron markets raise concern
• Market participants await NMDC price revision

Iron ore concentrate prices in Jabalpur, India, remained stable from the previous assessment on 26 April 2025, with BigMint’s bi-weekly index for the same assessed at INR 4,800/t ($56/t) exw-Jabalpur.

Prices remained stable as trades continued at previous offers. However, the market remained under pressure due to volatile pellet and sponge iron market sentiments. While sellers attempted to raise offers, no deals were concluded at or above INR 5,000/t ($59/t) exw Jabalpur.

The market is also awaiting the revised prices from the National Mineral Development Corporation (NMDC), which are yet to be announced.

Rationale

• Three (3) trades for a total of 23,000 t were recorded in the publishing window and were accorded 50% weightage.
• Eight (8) offers and indicative prices were reported, out of which seven (7) were taken into consideration as T2 trades, receiving the balance 50% weightage.

Market highlights

• Pellet prices remain stable amid moderate trades: Pellet prices in Raipur remained largely stable this week despite market volatility, with tags supported by moderate trading activity. However, demand was weak overall, driven by a decline in sponge iron and semi-finished prices. Additionally, Raipur-based buyers showed greater interest in sourcing pellets from Odisha, attracted by more competitive prices. PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, remained stable at INR 9,950/t ($117/t) DAP Raipur on 29 April compared to the previous assessment on 25 April.
• Sponge PDRI prices drop sharply as buying interest softens: The persistent decline in sponge iron (P-DRI) prices was a significant concern for market participants. Prices fell, as market participants remained cautious in the face of a declining steel market and lack of inquiries. BigMint’s daily sponge iron (PDRI) index declined sharply w-o-w by INR 1,100/t ($13) exw Raipur on 29 April 2025.
• Odisha iron ore prices inch up w-o-w: Odisha’s iron ore market largely held firm despite volatility in downstream segments, as steelmakers continued to actively procure material following the Odisha Mining Corporation (OMC) auction. BigMint’s Odisha iron ore fines (Fe 62%) index inched up by INR 50/t ($0.5/t) w-o-w to INR 5,300/t ($62/t) ex-mines on 26 April. At the OMC auction, prices of both fines and lumps remained largely stable m-o-m, reflecting balanced demand-supply dynamics.

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 decent transactions taking place. Further clarity is expected following NMDC’s iron ore price announcements, according to sources.