Iron ore concentrate prices in Jabalpur, central India, witnessed an increase this week due to stability in pellet prices and a hike in Odisha iron ore prices. Market participants are eagerly waiting for NMDC’s price revision for March 2023 to get better price clarity.
SteelMint’s index for Fe63% concentrate currently stands at INR 5,350/tonne (t) exw, up by INR 50/t exw as against the last assessment on 25 February. Some offers were also heard at a higher level of INR 5,450/t exw.
Meanwhile, a deal of 5,500 t was reported at INR 5,350/t exw which was taken into consideration in T1 trade for index calculation. Eight (8) firm offers and indicative prices were reported, which were taken into consideration in T2 and given the balance 100% weightage.
Factors supporting iron ore concentrate prices:
- Stability in pellet prices: SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, remained stable at INR 10,200/t DAP Raipur compared to the last assessment on 24 February. Raipur-based producers kept prices stable today at INR 10,200-10,500/t ($123-127/t) exw.
- Hike in Odisha iron ore prices: SteelMint’s weekly Odisha iron ore fines (Fe 62%) index stood at INR 5,700/t ex-mines, up by around INR 300/t. Post OMC iron ore auction, prices of the raw material have increased sharply on the back of low availability of high-grade fines in the market. As per sources, most of the small merchant miners have less material to offer as they are exhausting their EC limits ahead of the fiscal year-end, which has affected the supply side.
Outlook
Iron ore concentrate prices are expected to remain supported in the near term in view of active trade happening at current offers. However, the deciding factor may be the movement of iron ore and pellets prices.
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