India: Iron ore concentrate prices stay firm amid active trades

• Volatile sponge iron, steel market raises concern
• Trade-level HRC prices fall w-o-w

Iron ore concentrate prices in Jabalpur, India, remained stable compared to the previous assessment on 10 May 2025, with BigMint’s bi-weekly index for the same assessed at INR 4,850/tonne (t) ($57/t) exw Jabalpur.

Active trading at higher offers and stable prices in the pellet and Odisha iron ore markets have lent support to overall pricing. However, market participants are concerned as declining sponge iron and semi-finished steel prices reflect subdued market sentiment, sources told BigMint.

Rationale

• Four (4) trades of 44,000 t were recorded in the publishing window. These were accorded 50% weightage.
• Eight (8) offers and indicative prices were reported, and all were taken into consideration as T2 trades, receiving the balance 50% weightage.

Factors supporting concentrate prices

• Stability in pellet prices, trades under pressure: Raipur’s pellet market remained sluggish this week due to subdued buying interest. While sellers held firm at their offers, buyers stayed cautious, anticipating possible price corrections. BigMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, held steady at INR 9,800/t ($115/t) DAP Raipur on 13 May, unchanged from the previous assessment on 9 May. However, weak market sentiment and a wide gap between bids and offers prevented major deals from being concluded by local sellers. Inquiries also remained limited, driven only by need-based demand.
• Odisha iron ore prices remain unchanged w-o-w: Iron ore prices in Odisha remained largely stable this week, despite downward pressure from declining pellet and semi-finished steel prices. Market activity was moderate, with most buyers purchasing only on a need basis, while others adopted a cautious “wait and watch” stance amid ongoing uncertainty. BigMint’s Odisha iron ore fines (Fe 62%) index held steady week-on-week at INR 5,300/t ($62/t) ex-mines on 10 May. Miners maintained firm offers, resisting any downward price revisions. However, some reported a slowdown in inquiries, with counteroffers coming in below the quoted prices.

Why are concentrate prices facing pressure?

• Weak sponge iron, billet markets: Sponge iron and semi-finished steel prices remained volatile throughout the week as market participants remained cautious. Demand and enquiries stayed subdued, as most participants booked material only to meet immediate requirements. BigMint’s daily index for sponge PDRI (exw-Raipur) and billet (exw-Raipur) witnessed a drop of around INR 50/t ($1/t) and INR 300/t ($4/t), w-o-w.
• Trade-level HRC prices fall w-o-w amid tight liquidity: Demand remained weak, with buyers limiting purchases to immediate requirements. Liquidity constraints persisted, and most new transactions were conducted on credit, while payment recoveries continued to be slow. Trade-level prices of hot-rolled coils (HRCs) fell up to INR 500/t ($6/t) w-o-w across markets. Similarly, Cold-rolled coil (CRC) prices declined by up to INR 600/t ($7/t) w-o-w.

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.