- NMDC price hike boosts Sentiment
- Strong demand for higher grade material
BigMint’s latest bi-weekly assessment reflects a decisive strengthening trend in iron ore concentrate (Fe 62%) prices in the Jabalpur region increased by INR 150/t ($1.5/t) against the last assessment. Meanwhile, prices climbed by INR 100/t ($1/t) w-o-w to settle at INR 5,300/t ($59/t) ex-works as of 11 February, marking a clear upward shift from the previous assessment period. Higher-grade Fe 63% material is currently transacting at a firm INR 5,500-5,600/t ex-works, underscoring sustained appetite for superior-grade feedstock. Market participation remained vibrant, with active deal discussions and firm bid levels throughout the week.
The upward movement is being driven by shortage of high-grade material towards the end of this fiscal year amid exhausted EC of miners. Strengthening steel market dynamics, coupled with a notable upswing in pellet prices in Raipur, have created strong cost-push momentum for concentrate producers. Improved pellet realizations have reinforced seller confidence, prompting upward revisions in offers across the board. Most suppliers are now quoting at elevated levels, reflecting a clear shift in pricing power toward the sell side.
A Jabalpur-based seller shared with BigMint, “The recent INR 100/t hike by NMDC, along with sustained firmness in the pellet segment, has provided a solid pricing floor for concentrates. The market tone remains constructive, and we anticipate prices to either sustain at current levels or gradually firm up further.”
Another market participant highlighted tightening spot availability, stating, “We are currently fulfilling earlier dispatch commitments and are not releasing fresh cargo into the market, which is naturally limiting spot liquidity.”
Assessment Rationale
- Two (2) trade was recorded in this publishing window, in which only one (1) was taken into consideration, receiving a 50% weightage.
- Seven (7) offers and indicative prices were heard, and four (4) were taken into consideration as T2 trades, receiving 50% weightage.
Key Factors Supporting the Uptrend
NMDC revises prices upward: On 10 February, NMDC announced an across-the-board INR 100/t ($1/t) increase in list prices. The miner fixed DR CLO (10-40 mm, Fe 67%) at INR 5,250/t ($58/t) and iron ore fines (-10 mm, Fe 64%) at INR 4,000/t ($44/t) on an FOR Bacheli basis, excluding royalty, DMF, and NMET. The hike has strengthened the cost base for downstream segments, reinforcing bullish sentiment.
Pellet prices surge in Raipur: Raipur-based pellet manufacturers raised offers for Fe 62.5-63% (+/-0.5) grade pellets by INR 200/t ($2/t) to INR 10,400-10,500/t ($115-116/t) ex-works on 10 February 2026. The increase was driven by NMDC’s price revision, firm deal activity at prior levels, and positive traction in semi-finished steel markets. Additionally, a sharp INR 1,950/t w-o-w rise in sponge iron prices has further strengthened pellet economics, indirectly supporting concentrate valuations.
Outlook: The Jabalpur concentrate market is exhibiting structural firmness, backed by upstream price revisions, strong pellet realizations, and active downstream demand. Tight spot supply and disciplined selling strategies are reinforcing pricing resilience.
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