- Rain disrupts production, logistics in central India
- Buyers limit procurement to immediate requirements
India’s iron ore concentrate market remained firm this week, supported by recent trade and, higher pellet prices. According to BigMint’s latest bi-weekly assessment, Fe 62% iron ore concentrate was assessed at INR 4,500/t ($47/t) ex-works, unchanged from the previous assessment on 18 July. Meanwhile, offers for Fe 63% concentrate were heard at INR 4,900-4,950/t ($51-52/t) ex-works.
Trading activity remained moderate as most consumers had built sufficient inventories ahead of the monsoon season and continued to procure material only to meet immediate production requirements. On the supply side, persistent rainfall disrupted mining and processing operations across the region, while logistics bottlenecks, including railway congestion, delayed dispatches and slowed material movement.
Market participants indicated that several suppliers are currently focused on executing pending orders, while only a few continue to accept fresh bookings due to constrained production. The combination of weather-related supply disruptions and improving sentiment from the pellet market has kept sellers confident.
A Jabalpur-based seller told BigMint, “Most of the previously booked volumes are still being dispatched. Railway congestion has slowed material movement, and production has also been affected by rains. With support from stronger pellet prices amidst ongoing monsoons, we do not expect prices to soften.”
Market participants expect iron ore concentrate prices to increase by INR 100-200/t ex-works in the coming weeks if rainfall continues to hamper production and dispatches while pellet prices remain firm.
Rationale
- One (1) trade was recorded in this publishing window, which is taken into consideration, receiving a 50% weightage.
- Nine (9) offers and indicative prices were heard, and four (4) were taken into consideration as T2 trades, receiving 50% weightage.
Factors affecting price
PELLEX increases by INR 300/t; tight supplies keep market firm – PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, surged by INR 300/t to INR 9,850/t ($102/t) DAP on 21 July 2026 against 17 July. Pellet prices in the Raipur region increased by INR 300/t in the fresh trading week, supported by higher offers from local pellet producers and a balanced supply-demand situation. The latest price movement reflects tightening availability, as maintenance shutdowns at a few pellet plants have reduced spot supply and redirected buying enquiries toward active sellers.
Weighted average bids remain stable m-o-m in OMC’s Jul’26 iron ore fines auction – Odisha Mining Corporation (OMC) auctioned around 1.66 mnt of iron ore fines (Fe 51-65%) on 20 July 2026, with bids received for 1.524 mnt, representing nearly 92% of the offered quantity. Winning bids ranged between INR 3,450-5,100/t, with an average premium of around INR 100/t over the notified base prices. On a weighted average basis, bids remained stable m-o-m, indicating that buyer interest remained broadly stable despite lower auction volumes and tightening regulatory oversight.
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