India: Iron ore concentrate prices remain firm; market awaits outcome of OMC’s iron ore auction

• Buyers stay away amid monsoon-led supply disruptions
• NMDC’s price reduction pushes sellers to trim offers

Iron ore concentrate prices in Jabalpur, central India, remained steady in the past few days, amid limited movement in market fundamentals. BigMint’s bi-weekly index for Fe 62% concentrates stood at INR 4,400/t exw ($51/t) exw, unchanged as against the last assessment on 12 July. Meanwhile, Fe 63% concentrate prices stood at INR 4,500/t ($52/t) exw, stable as well.

The market initially maintained a steady tone, supported by consistent demand and relatively stable trading activity. However, by mid-week, sellers began reducing their offers following a price cut announced by NMDC. Additionally, weak buying interest and lower production, attributed to seasonal monsoon disruptions, exerted downward pressure on concentrate prices in the region.

Logistical challenges and supply disruptions caused by the ongoing monsoon led to a decline in demand for iron ore concentrate in the region. Limited transportation options and delays in delivery schedules discouraged buyers from making fresh bookings.

Interestingly, despite the constrained supply – typically a factor that drives prices upward – the market has witnessed subdued pricing trends. This unusual scenario is primarily due to weakened end-user appetite and cautious buying behaviour, which have offset the impact of lower availability, keeping prices from rising.

“We have sufficient material ready for delivery, but due to railway restrictions and ongoing supply chain disruptions during the monsoon, buyers are reluctant to make purchases,” said a Jabalpur-based seller.

Rationale

• No trade was recorded in this publishing window.
• Six (6) offers and indicative prices were heard, of which four (4) were taken into consideration as T2 trades, receiving 100% weightage.

Factors influencing concentrate prices 

• Sponge PDRI prices drop INR 200/t w-o-w: Sponge PDRI prices in Raipur declined by INR 200/t ($2/t) w-o-w, driven by subdued market sentiment. Buyers remained cautious amid an uncertain market environment, leading to limited transactions.
• Billet index falls w-o-w amid limited buying: Despite a slight uptick in prices over the past couple of days, as most sellers had already cleared their inventories, billet prices declined w-o-w due to subdued demand overall. As a result, BigMint’s billet index fell by INR 650/t ($8/t) w-o-w to exw-Raipur as of 16 July 2025.

Outlook

The outlook for iron ore concentrate prices remains range-bound, with continued volatility expected due to weak market sentiment, logistical challenges, and seasonal disruptions. Market participants are likely to stay cautious ahead of the upcoming OMC auction scheduled for 19 July, which could provide clearer direction on price trends, depending on bidding behaviour and response from buyers amid ongoing monsoon-related constraints.