- Firm demand, constrained supply support prices
- Limited fresh offers heard as order books are full
BigMint’s latest bi-weekly assessment for India’s iron ore concentrate (Fe 62%) prices are unchanged at INR 4,800/tonne (t) ($53/t) ex-works Jabalpur on 10 December, unchanged from 6 December. Market participants say that renewed and robust buying interest in the region has lent strong support to concentrate prices. Despite a correction in pellet prices, traders remain optimistic, with many expecting another upside in concentrate prices on improving demand sentiment.
Meanwhile, Fe 63% high-grade concentrate continues to command INR 4,900-5,100/t ($55-57/t) ex-works. Deals have been concluded within this band, along with a few slightly lower-priced transactions. However, a persistent shortage of high-grade ore across key producing regions has kept prices firm.
Sources highlight that tight availability, stronger procurement appetite, and active spot interest are collectively creating a favourable outlook. With buyers increasingly stepping up purchases, the overall tone in the concentrate market remains firm and cautiously on the upward side.
A Jabalpur based seller told BigMint: “Old deals are still being executed, so fresh negotiations will not begin immediately. With major buyers now entering the market, the momentum has completely shifted. In my view, there is absolutely no room for prices to fall from here. If anything, the presence of big players will only push concentrate prices further upward”.
Another Jabalpur-based seller said, “We are completely booked out for this month. Only after clearing these commitments we will consider coming out with fresh offers”.
Rationale
- Three (3) trade was recorded in this publishing window and two (2) was taken into consideration, receiving a 50% weightage.
- Eight (8) offers and indicative prices were heard, and four (4) were taken into consideration as T2 trades, receiving 50% weightage.
Factor supporting prices
Odisha iron ore prices inch up w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index inched up by INR 100/t ($1/t) w-o-w, reaching INR 5,700/t ($63/t) ex-mines on 6 December. Prices in the state strengthened as miners successfully closed several deals with both domestic steel mills and active market traders. Throughout the week, sentiment stayed firm and well-supported, driven by consistent buying interest and the tight availability of higher-grade ore, which added further upward pressure on prices.
Factor likely to hurt prices
PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, slipped by INR 200/t ($2/t) to INR 9,450/t ($105/t) DAP on 9 December, compared with the previous assessment on 5 December. Pellet prices in the Raipur market witnessed a steady decline over the past four days, largely due to weak buying interest and a sharp downturn in downstream steel prices. A notable drop in sponge iron and billet prices forced pellet producers to reduce their offers to stay aligned with market realities. Despite these corrections, overall buying activity remained muted, keeping sentiment under pressure and limiting any upward movement in offers.
Outlook
Iron ore concentrate prices are expected to remain firm or edge up slightly supported by tight availability of high-grade material, and active procurement from both traders and buyers. Sellers remain booked for the month, limiting fresh offers while the entry of bigger buyers is expected to further strengthen price sentiment.
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