India: Iron ore concentrate prices rise by INR 250/t ($3/t) w-o-w amid amid strong OMC auction response

• Rising pellet tags support gains in concentrates
• Monsoon-driven material shortages continue

Iron ore concentrate prices in Jabalpur, central India, witnessed an uptick this week. BigMint’s assessment indicates that the increase was driven by NMDC’s recent price revision, higher base tags in OMC’s auction, and premium bids during the auction, all of which collectively supported prices in the region.

BigMint’s bi-weekly iron ore concentrate index stood stable at INR 4,800/tonne (t) ($55/t) exw-Jabalpur, up by INR 250/t ($3/t) with the previous assessment on 13 August 2025. Meanwhile, Fe 63% iron ore concentrate prices hovered in the range of INR 4,950/t ($57/t) exw.

A few transactions were concluded at around INR 4,950/t ($57/t). However, some other suppliers remained focused on fulfilling pending dispatches from earlier bookings.

A Jabalpur-based supplier noted, “Supply disruptions caused by railway restrictions have eased to some extent. However, frequent rainfall in the region continues to pose operational challenges, as mining activity in open-cast mines becomes difficult under such conditions.”

The supplier further added, “Market sentiment is expected to rise, supported by strong participation in OMC’s recent auction, which is likely to provide a boost to prices in the near term.”

Material shortages continued to prevail in the Jabalpur region. A Jabalpur-based buyer observed, “Ongoing deliveries from earlier bookings are still in progress, and hence, no new orders have been placed so far.”

Rationale

• One (1) trade of 40,000 t was recorded in this publishing window and was considered under T1 trade. These were accorded 50% weightage.
• Six (6) offers and indicative prices were heard, of which five (5) were taken into consideration as T2 trades, receiving 50% weightage.

Factors influencing concentrate prices

• Pellet prices rise by INR 300/t ($3/t) in Raipur: Raipur-based pellet producers hiked their offers for 63% (+/-0.5%) material by INR 300/t ($3/t) to INR 10,300/t ($118/t) exw. The hike was supported by an increase in base prices in OMC’s iron ore auction today and limited fines availability, which firmed up raw material costs.
• Bids rise INR 250/t m-o-m in OMC’s iron ore fines auction: In OMC’s iron ore fines auction of 1.493 (Fe 51-65%) on 19 August 2025, around 1.472 mnt (98.6%) of fines were booked at INR 2,650-5,550/t, with premiums of INR 50-700/t over base prices. Bids (weighted average) rose by INR 250/t m-o-m. The hike in prices was led by the material shortage due to the heavy monsoon, which has impacted the production and dispatch of iron ore. Earlier, the miner had increased base prices by INR 300/t.

Outlook

Market participants anticipate a price increase, supported by strong response in OMC’s auction and positive sentiment in the pellet market.