India: Iron ore concentrate tags remain stable despite NMDC price cut

• Prices hold firm despite tepid steel demand
• Tags may decline following NMDC’s price cut

Iron ore concentrate (Fe 63%) prices in Jabalpur, India, remained unchanged in recent deals, with BigMint’s bi-weekly index for the same assessed at INR 4,700/tonne (t) ($55/t) exw on 2 July 2025 compared to 28 June.

However, NMDC’s iron ore price cut for July dispatches highlighted prevailing weak market sentiments. This, along with sluggish demand in the steel segment, kept the market under pressure.

“Prices are expected to decline in the coming days following NMDC’s recent price revision,” a Jabalpur-based seller stated.

Rationale

• Four (4) trades were recorded, out of which three (3) were considered. T1 was accorded 50% weightage.
• Six (6) offers and indicative prices were reported, out of which four (4) were taken into consideration as T2, receiving the balance 50% weightage.

Why are concentrate prices likely to face pressure?

• NMDC cuts iron ore prices in Jul’25: India’s largest merchant iron ore mining company, NMDC decreased list prices of iron ore calibrated lump ore (CLO) and fines, BigMint learnt from sources. The miner fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 6,400/t ($75/t) and iron ore fines (-10 mm, Fe 64%) at INR 4,850/t ($57/t), a decrease of INR 650/t ($8/t) and 500/t ($6/t), respectively.
• Raipur’s pellet offers fall by INR 300/t ($3.5/t): Raipur-based pellet producers cut their offers for Fe 62/63% (+/_0.5%) material by INR 300/t ($3.5/t) to INR 8,700-8,800/t ($102-103/t) exw. The drop in tags followed NMDC’s price cut for iron ore and poor sentiments in steel markets. Meanwhile, no deal was concluded at the revised offers, but some inquiries were received. Some deals could have been concluded today.
• Billet index drops w-o-w amid limited buying: BigMint’s billet index fell by INR 350/t ($4/t) exw-Raipur on 2 July, as subdued demand and limited spot transactions persisted. Despite lower offers, cautious buying and weak market sentiment continued to weigh on prices, contributing to the ongoing downtrend.

Outlook

Market participants are closely monitoring the impact of NMDC’s price revision, which is expected to weigh on sentiments in the near term. The ongoing monsoon is also expected to keep the market under pressure.