- Pending deliveries of previous orders keep offers firm
- Railway restrictions impacting supplies
Iron ore concentrate prices in Jabalpur, central India, remained largely stable this week, supported by the ongoing delivery of previous orders and constrained availability. Sellers continued to hold their offers firm despite a marginal dip in bids. According to BigMint, the market is currently experiencing mixed signals, with NMDC’s recent price reduction and range-bound pricing in Odisha putting mild downward pressure on overall sentiment.
BigMint’s bi-weekly index for Fe 63% concentrate currently stands at INR 4,700/t exw ($55/t) exw, remaining unchanged as against the last assessment on 5 July.
Market participants noted that supply-side factors are playing a crucial role in price stability.
“Offers remain unchanged due to lower production, with older orders still pending. Continued supply disruptions from railway restrictions are also impacting availability” a Jabalpur-based seller said.
Another local seller added, “There’s been no change in offers so far, as previous orders are still being executed. I don’t expect prices to fall below current levels.”
Despite NMDC’s base price cut, no significant downward correction has materialised in the Jabalpur market. Limited product availability, coupled with ongoing dispatches against earlier orders, has provided underlying support. While buyers are resisting higher offers, they are also wary of short-term supply limitations, leading to cautious procurement.
Rationale:
- One (1) trades of Fe 63% grade were recorded in this publishing window and were accorded with 50% weightage.
- Ten (10) offers and indicative prices were reported, out of which, seven (7) were taken into consideration as T2 trades, receiving 50% weightage.
Factors influencing concentrate prices
- Raipur pellet offers rise by INR 200/t ($2/t): Raipur-based pellet producers raised their Fe 62/63% (+/-0.5%) offers today by INR 200/t ($2.5/t) to INR 9,200/t ($107/t) exw. Earlier this week they had raised offers INR 8,900-9,000 ($104-105/t), with 220,000 t traded at previous prices in the last few days. Maintenance shutdowns at 10-11 sponge iron units have caused a daily production loss of about 3,000 t, supporting sponge PDRI and pellet prices in Raipur. Additionally, logistical challenges and the unviability of Odisha pellets strengthened Raipur’s pellet offers.
- Billet index rises w-o-w amid improved buying: BigMint’s billet index rose by INR 400/t ($5/t) exw-Raipur on 9 July, moderate trade activity was observed amid rising prices. Mills witnessed improved buying interest since the last trading session, which provided support to prices, particularly in finished long products.
Outlook
Iron ore concentrate offers in central India are expected to remain largely range-bound in the short term, at least until pending deliveries are completed. Any potential correction will likely depend on how quickly older orders are cleared and whether production and logistical bottlenecks ease in the coming weeks.
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