India: Iron ore concentrate prices drop by INR 200/t ($2/t) w-o-w amid sluggish market sentiments

• Buyers resist higher offers post-NMDC price drop
• Falling sponge, steel tags adds to downward pressure

Iron ore concentrate (Fe 63%) prices in Jabalpur, India, witnessed a drop this week in some recently-concluded deals compared to the previous assessment on 7 June 2025. BigMint’s bi-weekly index for the same was also assessed at INR 4,700/tonne (t) ($55/t) exw-Jabalpur, a decrease of INR 200/t ($2/t), w-o-w.

Weakening sponge iron and semi-finished steel tags, resulting in fall in bids from the buyers’ side, along with the recent announcement from the National Mineral Development Corporation (NMDC) of an iron ore price cut in June 2025, signal subdued market sentiments. These factors collectively are weighing on concentrate offers.

A Jabalpur-based seller noted, “Demand for concentrate is not aligning with the current expectations. NMDC’s price cut announcement is the major reason why buyers are rejecting offers at higher levels.”

Highlighting the market developments, another source mentioned, “Quality of ore is falling in the region and raw material output is not up to expectations, which is also affecting the concentrate market.”

Rationale

• Five (5) trades were recorded in the publishing window and four (4) were considered under T1 trades, according 50% weightage.
• Seven (7) offers and indicative prices were reported, out of which six (6) were taken into consideration as T2 trades, receiving the balance 50% weightage.

Why are concentrate prices under pressure?

• NMDC cuts iron ore prices in Jun: India’s largest merchant iron ore mining company, NMDC, reduced its list prices of iron ore calibrated lump ore (CLO) and fines on 4 June 2025, BigMint learnt from sources. The miner fixed prices of DR-CLO (10-40 mm, Fe 67%) at INR 7,050/t ($82/t) and of iron ore fines (-10 mm, Fe 64%) at INR 5,350/t ($63/t), a decrease of INR 150-160/t ($2/t). Prices are on FOR basis from its Bacheli complex and include royalty, DMF, and NMET. Prices were reduced, as India’s steel prices hit a two-month low, domestic pellet tags dropped sharply, the Odisha Mining Corporation (OMC) iron ore fines auction fetched a weak response, and NMDC’s Chhattisgarh auction witnessed flat bids.
• Sponge PDRI prices drop over INR 400/t w-o-w: Sponge PDRI prices in Raipur declined by INR 450/t ($5/t) w-o-w on 11 June 2025, driven by subdued market sentiment. Buyers remained cautious amid an uncertain market environment, leading to a drop in prices and limited transactions. Adequate bookings from the previous day prompted buyers to hold back on fresh commitments.
• Billet index drops w-o-w amid limited buying: Persistent weak market sentiment and cautious buying continued to pressure semi-finished steel prices. Despite lower offers, demand remained subdued, as most buyers chose to wait, leading to limited spot transactions and an ongoing downtrend. BigMint’s daily billet index dropped w-o-w by INR 700/t ($8/t) exw-Raipur on 11 June 2025.

Outlook

Market participants remain watchful for clearer pricing signals or signs of recovery in steel, iron ore, and pellet markets. While pre-monsoon restocking always provided support to offers, this time market sentiments are completely opposite as one source told BigMint, “Demand for concentrate was expected to remain on the higher side this month before monsoons, but nothing of that sort happened.”