Iron ore concentrate prices in Jabalpur, central India, remained unchanged this week as the market has opened after Deepawali holidays. Stability in pellets and iron ore prices in Odisha has also supported iron ore concentrate prices, SteelMint noted.
SteelMint’s index for Fe 63% concentrate prices currently stands at around INR 2,950/tonne (t) exw, stable as against the last assessment on 22 October. “Iron ore concentrate prices might witness an increase post OMC’s recently held iron ore auctions and prices will have more clarity shortly as the market has just opened after Diwali holidays,” said Jabalpur-based sellers.
Factors keeping prices stable:
- Stability in pellets prices: SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 8,000/t DAP Raipur stable compared to the last assessment on 21 October, 2022.
- Iron ore prices up w-o-w: SteelMint’s weekly Odisha iron ore fines (Fe 62%) index rose by INR 200/t to INR 3,700/t ex-mines in the recent deals concluded. In line with expectations, at Odisha Mining Corporation’s (OMC’s) iron ore fines auction on 19 October 2022, 0.944 mnt, or 91% of the total quantity put on offer (1.037 mnt), received bids. The bid price for fines increased by up to INR 450/t in the majority of the lots against the last auction on 19 September, 2022. Tight availability of high-grade ore fines, lower inventories with mills and supported pellets offers in eastern India have made the auction a success.
Outlook
Iron ore concentrate prices are expected to remain supported after the holidays. 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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