Iron ore concentrate prices witnessed a sharp fall this week. SteelMint’s index for Fe 63% concentrate prices currently stands at around INR 3,800/tonne (t) exw, down INR 900/t, w-o-w. Prices have hit a four-month low, as per data maintained with SteelMint. The drop in pellet and iron ore prices post export duty announcement has lowered offers for iron ore concentrates, SteelMint notes.
However, deals for around 60,000-70,000 t of concentrates were recorded in this publishing window, which was taken into consideration in the T1 trade for the index. Western India-based pellet makers were heard actively booking concentrates at offers of around INR 3,800-4,000/t exw.
Factors weighing on iron ore concentrate prices
- Drop in pellet prices: SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,600/t DAP Raipur on 31 May 2022, down by around INR 150/t compared to the last assessment on 27 May. The competitive deals concluded in Raipur from outside the state (Odisha) led to the price fall. Buyers are mostly exploring options outside the state for reasonable pellet deals. Around 26,000 t of deals were concluded in the last few days.
- Iron ore fines prices fall as buyers hold back: SteelMint’s weekly Odisha iron ore fines index (Fe 62%) fell sharply by INR 800/t w-o-w to INR 4,000/t ex-mines as of 28 May’22. In an indication of the sharp fall in the domestic steel raw materials market after the recent export duty revision, many buyers who had booked iron ore from different miners have slowed down the lifting of material, SteelMint learnt from sources.
Outlook
Iron ore concentrate prices are likely to remain under pressure amid falling pellet and iron ore prices post-export duty announcement by the Indian government.
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