- Dispatches an issue amid monsoon rains
- No trade happening at current offers
Iron ore concentrate prices in Jabalpur continued to remain under pressure for yet another week. Limited trade activities, heavy monsoon rains in the region, weak pellet and iron ore market sentiments along with bid-offer disparities weighed on prices. Meanwhile, some sellers were out of the market considering the current scenario.
“We are not offering currently. There is no clarity on prices as no trade is taking place at the current offers,” said a Jabalpur-based seller.
BigMint’s weekly iron ore concentrate index stood at INR 4,100-4,200/t ($49-50/t) exw, as against the last assessment on 27 July. However, buyers’ bids were heard at lower levels of INR 4,000/t ($48/t) exw. However, deals at such lower price levels are still awaited.
Another seller from the region said, “Heavy monsoon rains have started in the region, making dispatches an issue.”
Rationale:
- Zero (0) trade was recorded in this publishing window, and was accorded 0% weightage.
- Nine (9) offers and indicative pri’sces were reported, out of which eight (8) were taken into consideration as T2 trades, receiving a 100% weightage.
Meanwhile, BigMint’s bi-weekly domestic pellet (Fe 63%) index fell w-o-w by INR 200/t ($2/t) to INR 8,900/t ($106/t) DAP Raipur on 30 July, 2024. As per sources, the significant drop in the sponge-PDRI and finished steel prices had created a selling pressure on pellet producers. The buyers’ bids were continuously low against the offers which led to a drop in Raipur pellet prices.
Outlook
Iron ore concentrate offers are expected to remain under pressure in the near term amid heavy rains in the region and fluctuation in pellet and Odisha iron ore prices. Meanwhile, market participants are eagerly waiting for NMDC’s Chhattisgarh iron ore price revision — which is round the corner — and will offer more clarity on prices.
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