- Scarcity of material drives upward offer revisions
- Pellet price uptick lends support to concentrate market
BigMint’s latest bi-weekly assessment highlights a notable upswing in iron ore concentrate prices (Fe 62%) in the Jabalpur region. Prices surged by INR 150/t ($2.5/t) w-o-w to INR 5,200/t ($58/t) ex-works Jabalpur as of 4 February, reflecting a firm reversal from levels recorded on 31 January. This price escalation underscores strengthening market fundamentals, supported by an upward movement in pellet prices and a buoyant downstream steel market, which collectively reinforced raw material demand.
Market sentiment remained decisively bullish as tightening supply conditions continued to dominate the regional landscape. Persistent scarcity of iron ore concentrate has emerged as a key price driver, significantly influencing negotiations and deal closures. With limited material availability, sellers maintained higher offers, while buyers, wary of further tightening, actively stepped up procurement, amplifying the upward pressure on prices.
Buying activity in the region remained on the higher side, with multiple transactions concluded at prevailing offer levels, signalling strong acceptance of higher prices. The sustained buying momentum amid constrained supply indicates a well-supported market, where scarcity-driven dynamics and improving downstream demand are expected to keep concentrate prices on an upward trajectory in the near term.
A Jabalpur-based seller informed BigMint that offers have been revised upward in line with the strengthening market trend. “With prices gaining momentum, several of our deals at the current elevated levels are under negotiation. Rising demand for finished steel is providing strong support to prices and reinforcing bullish market sentiment,” the seller said.
A Jabalpur-based buyer informed BigMint that the recent upward revision in sellers offers prompted them to secure material in bulk to avoid further price escalation.
Rationale
- Three (3) trade was recorded in this publishing window, in which only two (2) was taken into consideration, receiving a 50% weightage.
- Six (6) offers and indicative prices were heard, and five (5) were taken into consideration as T2 trades, receiving 50% weightage.
Factors supporting prices
- Odisha iron ore prices remain stable: BigMint’s Odisha iron ore fines (Fe 62%) index remained flat w-o-w at INR 6,000/t ($65/t) ex-mines as of Saturday, 31 January. Market participants indicated that miners maintained their offer levels unchanged from the previous week and continued to entertain only selective bookings. Buying activity in the region remained restrained, with buyers procuring limited volumes strictly on a need basis. The absence of aggressive stocking at prevailing price levels reflects a cautious market sentiment, as participants remain watchful of near-term demand cues and broader price direction.
- Pellet prices inch up by INR 150/t ($1.5/t) in Raipur: PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, edged up by INR 150/t ($1.5/t) to INR 10,150/t ($110/t) DAP on 3 February compared with the previous assessment on 30 January. The upward movement reflects a fresh round of price revisions by local pellet producers, driven by strengthening market fundamentals. Pellet prices in Raipur registered this increase following an upward adjustment in offers observed earlier this week. The revision was supported by improving demand conditions in the sponge iron segment and a firmer downstream steel market, which continued to lend support to pellet realisations.
Outlook
Iron ore concentrate prices in Jabalpur are expected to remain stable to positive in the near term. Continued support from finished steel demand, increased buyer bookings, and ongoing supply constraints are likely to sustain price strength, while any further improvement in downstream market sentiment could provide additional upside.
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