- Monsoon-related disruptions tighten concentrate availability
- Positive pellet market, Odisha ore sentiment support prices
India’s iron ore concentrate market remained firm during the assessment week ended 29 July 2026 as persistent monsoon-related production disruptions tightened spot availability, while stronger pellet prices and resilient sentiment in the Odisha iron ore market continued to underpin offers. According to BigMint’s latest bi-weekly assessment, Fe 62% iron ore concentrate was assessed at INR 4,550/t ($48/t) ex-works, edging up by INR 50/t ($0.5/t) from the previous assessment on 25 July. Meanwhile, Fe 63% concentrate offers were heard at INR 4,900-5,000/t ($51-52/t) ex-works, reflecting firm seller expectations.
Market activity remained healthy during the week as buyers continued procuring material to meet immediate production requirements despite firm offers. Supply, however, remained constrained, with several beneficiation plants operating below normal levels due to electricity voltage fluctuations and weather-related disruptions across central India. Many producers prioritised dispatches against previously booked orders, while others maintained existing offer levels as steady buyer acceptance reduced the need for aggressive selling. Consequently, fresh spot availability remained limited and negotiations continued only where bid-offer gaps persisted.
A Jabalpur-based seller told BigMint, “Old orders are still being executed, but we expect another INR 200/t increase as market fundamentals remain supportive. Almost every plant is facing electricity voltage issues, which have affected production for the past 15 days. Demand remains healthy.”
On the demand side, procurement activity remained stable, although quality considerations influenced buying decisions. A Jabalpur-based buyer said, “Phosphorus levels in concentrate are currently on the higher side, making some material unsuitable for our operations. As a result, we have reduced consumption of high-phosphorus concentrate.”
Rationale
- One (1) trade was recorded in this publishing window, which was not taken into consideration. Therefore, this category received a 0% weightage.
- Eleven (11) offers and indicative prices were heard, and six (6) were taken into consideration as T2 trades, receiving 100% weightage.
Pellet strength and Odisha ore market reinforce sentiment
- PELLEX increases by INR 250/t ($2.5/t) w-o-w: Concentrate market sentiment continued to receive support from the pellet segment. BigMint’s PELLEX, the domestic pellet (Fe 63%) index for Raipur, increased by INR 250/t ($2.5/t) w-o-w to INR 10,100/t ($106/t) DAP on 28 July as persistent supply tightness and healthy downstream demand kept producer offers firm. Although buyers remained selective at higher prices, transactions continued as limited pellet availability kept the market undersupplied.
- Odisha iron ore prices increase marginally w-o-w: The Odisha iron ore market also remained supportive. Fresh offers emerged following the latest OMC auction, while auction-led procurement remained the primary source of buying. Meanwhile, Odisha’s iron ore dispatches declined to a four-month low of 13.3 mnt in June, and limited availability of lower-grade ore (Fe 57% and below) due to intensified regulatory inspections continued to support overall raw material sentiment.
Outlook
Iron ore concentrate prices are expected to inch up over the coming assessment week. Continued monsoon-related production disruptions, electricity-related operational issues and limited spot availability are likely to keep supply constrained. At the same time, firm pellet prices, supportive sentiment in the Odisha iron ore market and steady procurement by downstream consumers are expected to provide further support to concentrate prices. However, any improvement in production levels after the monsoon or easing of power-related disruptions could gradually improve spot availability and moderate the current upward pressure.
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