India: Iron ore concentrate prices hold firm amid limited availability

• Limited high-grade ore deal recorded 
• Fiscal yearend slows down physical movement

Iron ore concentrate prices remained firm this week, marking the seventh consecutive week of stability. As per BigMint’s latest bi-weekly assessment, Fe 62% concentrate prices continued to INR 5,300/t ($58/t) ex-works since 20 March, while Fe 63% material stayed elevated in the range of INR 5,600-5,700/t ($60-61/t) ex-works. The sustained steadiness reflects a well-supported market with no immediate signs of a price correction. However, around 40,000-45,000 t trading activity has been observed in the higher-grade (Fe 63%) segment in the range of INR 5,600-5,700/t exw ($60-61/t).

The persistence in prices can largely be attributed to firm seller positioning and continued deal closures at prevailing levels. Suppliers have shown strong resistance to price cuts, supported by consistent offtake from pellet makers and downstream steel producers. At the same time, buyers have gradually aligned with current price benchmarks, indicating a level of comfort and acceptance that has helped sustain market equilibrium without significant volatility.

On the supply side, sentiment received a boost from the latest auction conducted by Odisha Mining Corporation (OMC) on 19 Mar’26. The auction recorded healthy participation, with 1.57 mnt of lumps and 1.677 mnt of fines got booked. A notable increase in weighted average bids up INR 50/t m-o-m for lumps and INR 150/t m-o-m for fines points to strengthening buying interest and a proactive approach by steelmakers to secure raw materials amid tightening availability.

However, spot transactions in the concentrate segment remained limited, as most market participants focused on honoring earlier commitments. Feedback from Jabalpur suggests that “dispatch schedules have been impacted by fiscal year-end slowdowns, temporary operational pauses at plants, and logistical bottlenecks. Additionally, constrained availability of industrial gases due to ongoing geopolitical tensions has further tightened supply chains.” Market participants expect the current firmness to continue, with supply-side challenges likely to keep prices supported. Buyers, meanwhile, remain largely aligned with existing contracts, indicating stability in procurement strategies and reinforcing the overall steady-to-firm market outlook.

Rationale

• Zero (0) trade was recorded in this publishing window receiving a 0% weightage.
• Ten (10) offers and indicative prices were heard, in which seven (7) are taken into consideration as T2 trades, receiving 100% weightage.

Factors supporting prices

• Pellet prices steady in Raipur: PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, remained unchanged at INR 10,800/t DAP on Monday. Market activity reflected a cautious and subdued sentiment, with participants adopting a wait-and-watch approach. While trading volumes were moderate, overall pellet demand showed signs of easing, as buyers refrained from aggressive procurement at prevailing price levels.
• Odisha iron ore prices increase by INR 100/t ($1/t) w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index rose by INR 100/t ($1/t) w-o-w to INR 5,850/t ($63/t) ex-mines on Friday (20 March), supported by stronger bids in the latest Odisha Mining Corporation (OMC) auction and a firm buying response. The auction witnessed active participation from steelmakers, reflecting improved market sentiment and a growing willingness to secure raw materials amid tightening supply conditions. However, offer availability has remained constrained in recent weeks due to expiry of environmental clearances (ECs), limiting supply in the market. Going forward, supply is expected to improve from next week, as miners are likely to resume bookings under renewed EC limits, which may bring some balance to the demand-supply dynamics.

Outlook

Iron ore concentrate prices are likely to remain well-supported in the near term, driven by constrained supply and sustained demand from pellet makers. Additionally, rising fuel costs are expected to lend further strength to pellet prices, which in turn will provide a supportive floor to concentrate prices.