- Pre-monsoon restocking supports stable prices
- Billet prices drop to 3-month low
Iron ore concentrate (Fe 63%) prices in Jabalpur, India, witnessed a marginal increase of INR 50/t ($1/t) compared to the previous assessment on 24 May 2025, with BigMint’s bi-weekly index for the same assessed at INR 4,900/tonne (t) ($57/t) exw Jabalpur.
Active restocking ahead of monsoon, along with stable pellet prices in Odisha lent support to overall prices. However, market participants are concerned as declining sponge iron and semi-finished steel prices reflect subdued market sentiment weighing on concentrate offers, sources told BigMint.
Sellers remained reluctant to reduce offers, as a Jabalpur-based seller stated, “We have no intention of reducing our offers as pre-monsoon restocking is expected to support current prices.”
“We are not inclined to revise our offers at the moment. However, if a price adjustment becomes necessary, it would be limited to a maximum of INR 100/t ($1/t),” said another Jabalpur-based seller.
Rationale
- Two (2) trades of 50,000 t were recorded in the publishing window. These were accorded 50% weightage.
- Nine (9) 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 amid need-based buying: Pellet prices in Raipur remained stable this week following a significant correction of INR 300-400/t ($4–5/t) the previous week. Market sources suggest that sellers are maintaining current offer levels while awaiting buyer responses. BigMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stayed unchanged at INR 9,400/t ($110/t) DAP Raipur as of 27 May, in line with the previous assessment on 23 May.
- Odisha iron ore prices remain range-bound w-o-w: Iron ore prices in Odisha remained under pressure as lacklustre participation in the recent Odisha Mining Corporation (OMC) auction weighed on market sentiment. The auction saw subdued interest, especially for iron ore fines, reflecting weak demand from steel and sponge iron producers. In response, some merchant miners revised their offers, but buyer interest remained low amid falling pellet and sponge iron prices. BigMint’s Odisha iron ore fines (Fe 62%) index held steady w-o-w at INR 5,100/t ($60/t) ex-mines on 24 May.
Why are concentrate prices facing pressure?
- Billet market slumps as prices hit 3-month low: BigMint’s billet index dropped to INR 39,500/t ($461/t) exw-Raipur on 27 May 2025, marking a three-month low as weak demand continued to pressure spot prices. While overall market sentiment remained volatile, lower prices sparked improved buying interest in the semi-finished steel segment. However, finished steel demand stayed sluggish, prompting further price corrections.
- Sponge PDRI prices drop over INR 400/t w-o-w: Sponge PDRI prices in Raipur declined by INR 450/t ($5/t) w-o-w, driven by subdued market sentiment. Sluggish demand in recent weeks led to stock accumulation, prompting sellers to reduce prices under inventory pressure. The price correction, however, resulted in improved transactions, sources informed.
Outlook
Market participants are closely monitoring the steel, iron ore, and pellet markets for signs of price clarity or a potential rebound to improve overall sentiment. Trade activity is expected to stay supported by pre-monsoon restocking efforts. However, weakening sentiment in the downstream sector continues to raise concerns.
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