Iron ore concentrates prices in India have continued to strengthen on the back of the recent hike in iron ore prices. SteelMint’s assessment for Fe 63% grade concentrate prices stands at INR 5,500/ tonne (t) exw, up by INR 900/t w-o-w. Iron ore concentrates prices have hit a five-month high, as per data maintained with SteelMint.
It may be mentioned, the Jabalpur region in Madhya Pradesh produces around 1.80-1.90 mnt of iron ore concentrates annually. Out of this, Chhattisgarh and Maharashtra each consumes 40% of the total production while Rajasthan consumes 15%. Some of the procurement also happens from Odisha occasionally.
Factors supporting the hike in concentrates prices-
- Deals concluded at increased prices: Some deals of concentrates have been heard this week at INR 5,450-5,500/t exw. Price acceptance from pellet players have supported the price hike.
- Supply tightness: Due to pending delivery and limited availability, some Madhya Pradesh-based concentrates suppliers further increased their offers to INR 5,500-6,000/t exw.
- Hike in domestic iron ore prices: Concentrates prices in Jabalpur are also governed by NMDC prices. NMDC had last week increased prices of iron ore fines by INR 300/t, resulting in a jump in concentrate prices this week. Iron ore prices also rose in Odisha. SteelMint’s weekly Odisha iron ore fines index (Fe 62%) was at INR 6,200/t ex-mine last week, rising by INR 300/t w-o-w. Domestic pellet prices also increased by INR 350/t this week. Price for Fe 63% grade pellets stands at INR 13,000/t DAP Raipur.
Outlook
In view of increasing demand for iron ore concentrates in the last few years, several plants including Pacific Iron, Geomin and Jakhodia Minerals are planning capacity expansions. Some greenfield projects are also in the pipeline.
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