Iron ore concentrate prices in Jabalpur, central India, witnessed a slight decrease this week due to weak iron ore market sentiments and heavy monsoons in the region.
SteelMint’s index for Fe 63% concentrate prices currently stands at around INR 3,100/tonne (t) exw, a fall of INR 50/t as against the last assessment on 17 September. Some offers were also heard higher at around INR 3,300/t exw.
Meanwhile, active deals of around 43,000 t were heard at around INR 2,900-3,200/t this week and all were taken into consideration in the T1 trade of the index.
Factors pulling down iron ore concentrate prices:
- Odisha iron ore prices down w-o-w: SteelMint’s weekly Odisha iron ore fines index (Fe 62%) moved down by around INR 50/t to INR 3,400/t ex-mines last week. The rise in closing stocks clearly reflects the slow pace of iron ore offtake by the mills on weak market sentiments.
- Seasonal factors: Iron ore concentrate market has been affected by heavy monsoons in the region for one week following which rake movements have become an issue and old purchase orders are gradually being dispatched via the road route. No active trade deals have been reported at higher offers, consequently affecting prices, SteelMint learnt from various sources.
Outlook
Iron ore concentrate prices are likely to remain supported after the end of the monsoon. However, the deciding factor could be the movement in pellet and iron ore prices.
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