India: Iron ore concentrate prices stay firm in recent deals post-OMC auction

• Bids drop m-o-m in OMC’s iron ore fines auction
• Pre-monsoon restocking supports stable prices

Iron ore concentrate prices in Jabalpur, India, remained stable compared to the previous assessment on 17 May 2025, with BigMint’s bi-weekly index for the same assessed at INR 4,850/tonne (t) ($57/t) exw Jabalpur.

Active restocking ahead of the monsoon, along with a modest rebound in domestic semi-finished and sponge iron prices, supported overall prices. However, market sentiment remained cautious, amid a subdued pellet segment and following lukewarm response in the recent iron ore fines auction from the Odisha Mining Corporation (OMC), where bids dropped m-o-m.

However, sellers remained reluctant to reduce offers, as one of the Jabalpur-based sellers stated, “We have no intention of reducing our offers. The decline in pellet prices is only temporary, and pre-monsoon restocking is expected to support current prices.”

“We are not inclined to revise our offers at the moment. However, if a price adjustment becomes necessary, it would be limited to a maximum of INR 100/t ($1/t),” said another Jabalpur-based seller.

Rationale

• One (1) trade of 10,000 t was recorded in the publishing window and was accorded 50% weightage.
• Eight (8) offers and indicative prices were recorded, and all were taken into consideration under T2, receiving the balance 50% weightage.

Why are concentrate prices under pressure?

• Bids drop m-o-m in OMC’s iron ore fines auction: In OMC’s auction for 1.328 million tonnes (mnt) of iron ore fines (Fe 55-65%) on 19 May’25, 0.508 mnt (38%) from different lots were booked at the base prices within the range INR 4,100-5,500/t ($48-64/t) ex-mines. Bids (weighted average) dropped INR 100/t ($1/t) m-o-m. Weaker pellet and sponge prices led to the weak response. OMC had decreased the base prices by around INR 50-100/t ($0.5-1/t) m-o-m for some fines lots.
• PELLEX falls by INR 150/t ($2/t) following revised offers: Pellet prices in the Raipur region witnessed a notable decline over the past few days, as market activity adjusted to revised offers and muted demand. Notably, pellet producers in Raipur reduced their offers by INR 200/t ($2.5/t) over the weekend, reflecting the subdued sentiment in both raw material and finished steel markets. PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, dropped by INR 150/t ($2/t) to INR 9,550/t ($111/t) DAP Raipur on 20 May compared to the previous assessment on 16 May.

Sponge iron, billet tags edge up d-o-d

However, sponge iron and semi-finished steel prices showed signs of recovery, supported by improved market sentiment supporting iron ore concentrate offers. Prices experienced a slight upward movement, encouraging modest buying activity throughout the day. Steady demand for finished steel products further bolstered spot offers, contributing to a more confident market tone. According to BigMint’s daily index, both sponge PDRI (exw-Raipur) and billet (exw-Raipur) recorded a d-o-d increase of approximately INR 50/t ($0.5/t).

Outlook

Market participants are closely watching the steel, iron ore, and pellet markets for signs of price stabilisation or an uptick to boost overall sentiment. However, weakening sentiments in the pellet and iron ore market have raised concerns.