- NMDC announces iron ore price hike
- Rise in pellets, iron ore prices support offers
- Buyers yet to accept increased offers
Iron ore concentrate prices in Jabalpur, central India, remained supported this week on the National Mineral Development Corporation’s (NMDC’s) recent iron ore price hike announcement followed by supportive sentiments from pellet and Odisha iron ore market. Fe63% concentrate currently stands at INR 4,450/t ($53/t) exw, stable as against the last assessment on 27 April’24.
Some offers were heard at higher levels of INR 4,700-4,800/t ($56-58/t) exw. However, buyers are yet to accept these offers, as one trader stated: “No one is willing to accept the current offers”.
“Market still lacks clarity on prices. Buyers are not ready to accept increased offers. Therefore, we have not revised offers yet,” said a Jabalpur-based seller.
Rationale:
- Two (2) trades amounting to a total of 22,000 t were recorded in this publishing window, out of which only one was considered under T1 trade and was accorded with a 50% weightage.
- Eight (8) offers and indicative prices were reported and only five (5) were taken into consideration as T2 trades, receiving 50% weightage.
Factors supporting concentrate offers:
- Hike in NMDC iron ore prices: India’s largest merchant iron ore mining company, NMDC, increased list prices of iron ore fines by INR 200/t ($2/t), BigMint learnt from reliable sources. The company’s effective prices are effective from 27 April. The miner has fixed prices of iron ore fines (-10 mm, Fe 64%) at INR 5,260/t ($63/t) on FOR basis from its Bacheli complex. Prices include royalty, DMF and NMET charges.
- Domestic pellet index up INR 200/t: BigMint’s bi-weekly domestic pellet (Fe 63%) index increased by INR 200/t ($2/t) to INR 10,050/t ($120/t) DAP Raipur on 30 April, 2024 compared to the last assessment on 26 April. After the sharp improvement in sponge iron and finished steel prices, buyers aggressively concluded deals this week. Pellet prices in Raipur increased after the iron ore price hike by NMDC Chhattisgarh last week. Firm sponge iron and billet prices enhanced market confidence.
- Odisha iron ore fines prices stable w-o-w: BigMint’s weekly Odisha iron ore fines (Fe 62%) index remained stable at INR 4,950/t ($59/t) ex-mines on 27 April. Iron ore offers remained supportive amid price hike announcements by miners for both fines and lumps. However, there was lack of material availability for high-grade ore, as only a few miners offered Fe62+% material in the merchant market.
Outlook
Iron ore concentrate offers are expected to remain supported in the near term amid supportive sentiments from pellets and Odisha iron ore market. However, buyers’ resistance to increased offers might put pressure on concentrate prices, BigMint understands.