Iron ore concentrate prices in Jabalpur, central India, remained stable this week amid weak iron ore market sentiments, low buying, and decrease in pellet and Odisha iron ore prices.
SteelMint’s index for Fe 63% concentrate currently stands at around INR 2,900/tonne (t) exw, stable as against the last assessment on 29 October. However, no trades were reported by SteelMInt in this publishing window.
Why are buyers holding back?
- Fall in pellet prices amid limited trades: SteelMint’s index for Fe 63% concentrate prices currently stands at around INR 3,150/tonne (t) exw, a rise of INR 50/t as against the last assessment on 10 September. Buyers are still reluctant to buy at prevailing prices and they are quoting around INR 7,500-7,600/t exw for pellets owing to the continuous fall in sponge prices. An uncertain market scenario and the lack of clarity are driving buyers away.
- Odisha iron ore prices edge down: SteelMint’s weekly Odisha iron ore fines (Fe 62%) index decreased to INR 3,600/t ex-mines (including royalty, DMF & NMET). The market has remained subdued with fewer trades heard. A few Odisha-based merchant miners lifted offers after active response was seen in OMC’s auction conducted last week. However, no firm trades were reported at increased offers this week. On the other hand, a steep drop in global prices has resulted in mills raising enquiries for imports.
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 iron ore prices.
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