Iron ore concentrate prices in Jabalpur, central India, continue to remain stable this week amid weak iron ore market sentiments and stability in pellet prices.
SteelMint’s assessment for Fe 63% concentrate prices currently stands at around INR 2,900/tonne (t) exw, stable as against the last assessment on 5 November.
Meanwhile, deals of around 48,000 t were heard at INR 2,900/t exw this week as against 52,000 t on 5 November, which was taken into consideration in the T1 trade of the index.
Factors holding back prices
- Stability in pellet prices: SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 7,800/tonne (t) DAP Raipur, stable compared to the last assessment on 4 November. Trades continue to remain muted on bid-offer disparities and the drop in sponge iron prices. Buyers’ bids inched down further to around INR 7,150/t DAP due to the continued fall in sponge iron prices. Demand for pellets almost dried up owing to falling bids from buyers who are mainly waiting for NMDC’s iron ore price announcement expected shortly.
- Odisha iron ore prices fall w-o-w: SteelMint’s weekly Odisha iron ore fines (Fe 62%) index decreased by INR 100/t to INR 3,500/t ex-mines (including royalty, DMF & NMET). Buying interest improved in the recent auctions conducted, however, prices have come under pressure on improved production and the drop in pellets and sponge iron prices.
Outlook
Iron ore concentrate prices are expected to remain supported in the near term. However, the deciding factor could be buyers’ expectations of a price cut and the movement in pellets and NMDC iron ore prices.
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