India: Iron ore concentrate prices inch up INR 50/t ($1/t) following NMDC’s price hike

• NMDC announces price hike in May’25
• Trades conclude at higher offers

This week, iron ore concentrate offers in Jabalpur, central India, witnessed a marginal increase, influenced by a price hike by the National Mineral Development Corporation (NMDC). Active trading at higher offers and supportive sentiments from the pellet and Odisha iron ore markets supported prices, sources informed BigMnt.

BigMint’s bi-weekly iron ore concentrate index stood at INR 4,850/tonne (t) ($57/t) exw-Jabalpur, an increase of INR 50/t ($1/t) from the previous assessment on 3 May 2025.

India’s largest merchant iron ore mining company, NMDC, increased list prices of DR CLO and fines on 1 May by INR 140/t ($2/t) and INR 440/t ($5/t), respectively, BigMint learnt from sources. The company’s prices are effective from 1 May. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 7,210/t ($85/t) and of iron ore fines (-10 mm, Fe 64%) at INR 5,500/t ($65/t) on FOR basis from its Bacheli complex. Prices include royalty, DMF, and NMET charges.

Rationale

• Six (6) trades of 107,000 t were recorded in this publishing window and were considered under T1 trade. These were accorded 50% weightage.
• Nine (9) offers and indicative prices were reported, and all were taken into consideration as T2 trades. These received 50% weightage.

Market highlights

• Odisha iron ore fines index stable w-o-w: Iron ore prices in Odisha remained largely stable this week as trading activity continued at a moderate pace. Market participants informed that miners kept offers unchanged w-o-w, but inquiries slowed amid a decline in sponge iron and pellet prices across central and eastern India. BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,300/t ($63/t) ex-mines on 3 May.
• Pellet prices unchanged amid subdued buying interest: The pellet market in Raipur remained range-bound this week, with trading activity largely subdued. Participants noted limited movements, with no confirmed deals, indicating a cautious stance among buyers amid unclear market cues. PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, remained stable at INR 9,800/t ($116/t) DAP Raipur on 6 May compared to the previous assessment on 2 May.
• Weakening sponge iron market raises concern: Sponge iron (PDRI) prices in Raipur decreased by around INR 100/t ($1/t) w-o-w on 7 May, impacted by sluggish movements in the semi-finished and finished steel segments, which led to further reduction in offers. The downtrend in steel could potentially exert downward pressure on iron ore concentrate prices and has raised concerns among market participants.

Outlook

Iron ore concentrate offers are expected to remain supported, considering current sentiments in the iron ore and pellet markets. However, weakening sentiments in downstream markets raises concerns.