India: Iron ore concentrate prices witness uptrend as monsoon disruption tightens supply

• Dispatches of previous orders limit spot availability
• Positive Odisha iron ore sentiment supports prices

India’s iron ore concentrate prices inched up amid a broadly supportive market environment, with firm pellet prices and positive sentiment in Odisha’s iron ore market lending support to the Jabalpur market. BigMint’s bi-weekly assessment for Fe 62% concentrate rose by INR 50/t ($0.5/t) to INR 4,700/t ($49/t) ex-works, while Fe 63% concentrate offers were heard at around INR 4,900/t ($52/t) ex-works.

Market sentiment remained cautiously positive as monsoon-related disruptions tightened near-term availability. Persistent heavy rainfall has affected mining and material movement in the region, while railway siding restrictions and operational constraints have further delayed dispatches. Several sellers are still struggling to clear previously booked orders as adverse weather conditions and transportation bottlenecks have extended delivery timelines, limiting the availability of fresh material in the spot market.

The supply-side constraints are providing a degree of price support despite relatively moderate spot buying. Some buyers had already secured material in bulk earlier and are therefore adopting a wait-and-watch approach, while high moisture levels in freshly mined material during the monsoon have also slowed buying and dispatch activity. Nevertheless, underlying demand remains intact, particularly as improving pellet prices and firmer pellet market sentiment are supporting concentrate consumption and improving seller confidence.

Market participants indicated that the current price levels have been broadly accepted by buyers, although fresh transactions remain limited. Some sellers continue to honour earlier commitments at previously agreed prices, even as replacement costs and prevailing offers have moved higher. This has created a gap between contracted material and fresh-market availability, keeping the spot market relatively firm despite subdued transaction volumes.

A Jabalpur-based seller told BigMint that “no fresh deals were concluded and prices remained unchanged, adding that heavy rainfall was hampering production and creating significant difficulties in handling and dispatching concentrate”.

Meanwhile, a trader said that “market sentiment was currently stable but expected prices to move higher in the coming days.”

Rationale

• One (1) trade was recorded in this publishing window, which was taken into consideration. Therefore, this category received a 50% weightage.
• Seven (7) offers and indicative prices were heard, in which six (6) are taken into consideration as T2 trades, receiving 50% weightage.

Factors shaping market dynamics

• PELLEX increases by INR 350/t ($3.5/t) w-o-w: PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur increased by around INR 350/t w-o-w to INR 10,800/t DAP Raipur on 25 August 2026, supported by firm demand from sponge iron, pig iron and billet producers, higher raw material costs, and constrained pellet availability. Pellet offers also strengthened, with local sellers quoting around INR 10,600-10,700/t ($111-112/t) ex-works, while around 27,500 t of deals were reported during the assessment period, reflecting healthy buying activity and enabling sellers to maintain a firm stance.
• Odisha iron ore prices steady w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index remained unchanged w-o-w at around INR 5,000/t ($52/t) ex-mines as of 22 August 2026, as stable weighted-average bids in the August Odisha Mining Corporation (OMC) auction offset higher base prices announced by the miner. The auction, held on 19 August, provided fresh price cues, while cautious downstream procurement balanced firm producer price expectations, keeping the market rangebound.

Outlook

Iron ore concentrate prices are expected to edge higher in the near term, supported by firm pellet prices, positive downstream sentiment, and continued monsoon-related supply constraints. As sellers complete dispatches against earlier orders, fresh material is likely to enter the market at higher replacement levels, with new offers expected to emerge mostly on the upside. However, the pace of price movement will depend on the recovery in mining and railway dispatches and the extent of fresh buying interest from pellet producers.