Iron ore concentrate prices in the Jabalpur region witnessed a marginal fall this week. SteelMint’s index for Fe63% concentrate prices currently stands at around INR 2,600/tonne (t) exw, a drop of around INR 50/t as against the previous assessment on 2 July, 2022.
Meanwhile, market participants expect that prices are less likely to drop further due to the following reasons-
- Hike in pellet prices on rising offers: SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,150/t DAP Raipur on 5 July 2022, up by around INR 150/t compared to the last assessment on 1 July. Godawari Power and Ispat Ltd (GPIL) raised pellet offers today by INR 300/t to INR 8,500/t ($107/t). Meanwhile, offers from other Raipur-based pellet producers are assessed at INR 8,200-8,300/t ($104-105/t) exw. A hike in sponge iron prices on seasonal constraints led to the rise in pellet offers.
- Iron ore prices up marginally: SteelMint’s weekly Odisha iron ore fines index (Fe 62%) was up by INR 100/t w-o-w to INR 3,200/t ex-mines. A hike in sponge and pellet prices this week resulted in an increase in fines prices.
- Seasonal factors: With monsoons approaching, iron ore availability in India may remain tight which may support ore concerntrate prices in the near term.
Outlook
Iron ore concentrate prices are less likely to fall further due to the approaching monsoon and recovery in pellet and iron ore prices.
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