Iron ore concentrate prices in Jabalpur fell by around INR 200/tonne (t) on a weekly basis. SteelMint’s index for Fe 63% concentrate prices stood at around INR 5,600/t exw.
However, some deals for around 50,000 t were heard this week, largely by central India-based pellet-makers.
Factors weighing on prices
- Drop-in pellet prices: SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 11,250/tonne (t) DAP Raipur on 26 April 2022, down further by INR 350/t compared with the last assessment on 22 April. Raipur pellet makers cut offers yesterday by around INR 300-500/t and, in the last one week, prices have decreased by INR 800 over two successive cuts. The gap between offers and bids narrowed down but it will be interesting to see whether buying enquiries will arise at these price levels.
- Falling sponge iron prices: Domestic sponge iron prices fell on weaker buying sentiments. Steel production cuts on power outages, lack of price clarity on coal and weaker end-user buying sentiments kept procurement of raw materials on the lower side. SteelMint’s latest assessment of sponge iron (PDRI) stood at INR 35,500/t, exw Raipur on 27 April 2022, a sharp fall of INR 2,500/t, w-o-w.
- Arrival of imported concentrate cargoes – Meanwhile, import bookings of iron ore concentrate were heard recently. An Indian steel major concluded an import deal for 73,601 t of iron ore concentrate from the USA, according to vessel line-up data maintained with SteelMint. The shipment is scheduled for the end-April at Paradip port.
Outlook
Iron ore concentrate prices are likely to remain under pressure amidst lower bids.
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