Iron ore concentrate prices in Jabalpur, central India, remained stable this week due to a marginal increase in iron ore prices in Odisha amid the ongoing monsoon season.
SteelMint’s index for Fe 63% concentrate prices currently stand at around INR 3,000/tonne (t) exw, stable as against the last assessment on 23 July. Some offers were also heard at a higher INR 3,200/t exw.
Meanwhile, deals of around 28,000 t were heard this week, mostly by eastern India-based pellet-makers, which were taken into consideration in the T1 trade of the index.
Why are suppliers holding on to offers?
- Odisha iron ore prices up marginally: SteelMint’s weekly Odisha iron ore fines index (Fe 62%) moved up marginally w-o-w at INR 3,550/t ex-mines. Most of the miners are keeping offers firm post OMC auction. However, not many deals were heard due to production cuts at pellet plants and a drop in sponge iron prices this week.
- Seasonal factors: During the monsoon season, iron ore availability in India may remain tight which may support iron ore concentrate prices in the near term.
Outlook
Iron ore concentrate prices are likely to remain supported due to the monsoon and supported iron ore prices. However, a fall in pellet prices may result in the lowering of bids from pellet players.
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