- Bid-offer gap keeps negotiations active
- Market fundamentals outweigh NMDC’s price revision
India’s iron ore concentrate prices remained unchanged in the latest assessment despite subdued spot activity. Weak downstream steel prices, softer Odisha iron ore prices and NMDC’s recent price reduction encouraged buyers to seek lower procurement levels. However, producers largely maintained existing offers as they continued dispatching previously booked volumes, preventing any immediate correction in concentrate prices.
According to BigMint’s latest bi-weekly assessment, Fe 62% iron ore concentrate was assessed at INR 4,450/t ($47/t) ex-works, unchanged from the previous assessment on 11 July. Meanwhile, Fe 63% concentrate offers were heard at around INR 4,950/t ($52/t) ex-works.
Fresh spot transactions remained moderate as most producers focused on executing earlier orders rather than aggressively pursuing new orders. This reduced immediate selling pressure, allowing suppliers to hold offers despite softer raw material benchmarks. At the same time, buyers linked fresh enquiries to NMDC’s latest downward price revision and declining Odisha iron ore prices, seeking discounts before confirming new bookings.
The market remained divided on pricing. While some suppliers offered limited discounts to secure volume-based orders or meet specific customer requirements, most sellers resisted broader price cuts, arguing that current offers already reflected prevailing market fundamentals. Consequently, negotiations continued across multiple deals, with several transactions expected to conclude over the next few days.
A Jabalpur-based seller told BigMint, “We have not changed our offer after NMDC’s price revision. Our prices are already on the lower side, and several deals are under negotiations.”
A buyer said, “Our previous purchase order is still being executed. We have sought a lower price for the next booking, but negotiations are still ongoing.”
Rationale
- One (1) trades were recorded in this publishing window, which is taken into consideration, receiving a 50% weightage.
- Nine (9) offers and indicative prices were heard, and seven (7) were taken into consideration as T2 trades, receiving 50% weightage.
Factors affecting prices
- Odisha iron ore prices remain firm w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 4,900/t ($51-52/t) ex-mines as of 11 July. Although benchmark prices were unchanged, the market maintained a softer undertone, with trading activity largely concentrated in Fe 60% and above-grade material. Demand for lower-grade (Fe 55-60%) ore remained subdued due to continued uncertainty over material dispatch, limiting transaction volumes in the segment.
- NMDC reduces iron ore prices for July deliveries: India’s largest merchant iron ore mining company, NMDC, has reduced its list prices of iron ore CLO (calibrated lump ore) and fines on 10 July 2026, BigMint learnt from sources. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 5,850/tonne (t) ($61/t) and of iron ore fines (-10 mm, Fe 64%) at INR 4,700/t ($49/t). Prices are on FOR basis from the miner’s Bacheli complex and exclude royalty, DMF, and NMEDT. Prices of all grades have decreased in the range of INR 150-500/t.
Outlook
Iron ore concentrate prices are expected to remain largely stable-to slightly-weak in the coming weeks. While monsoon-related disruptions could affect mining operations and material dispatches, subdued buying interest and the completion of existing order commitments are likely to delay fresh bookings, with demand expected to remain the key determinant of price direction.
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