- Market awaits fresh ECs for FY’25
- Demand muted ahead of financial year closure
- Pellet offers drop INR 200-300/t w-o-w in Odisha
BigMint’s weekly Odisha iron ore fines (Fe 62%) index decreased by INR 200/t ($2.4/t) w-o-w to INR 4,550/t ($55) ex-mines on 30 March 2024. No deal of Fe62% fines was recorded this week as buyers waited for fresh EC limits from next week.
Odisha iron ore prices remained under pressure in the last week of this financial year amid weak response from buyers and a downtrend in the export market.
An Odisha-based miner said, “Demand from buyers has remained sluggish as very few enquiries were received. Export prices are also not viable for us to sell material at current prices owing to higher production and transportation costs. However, we sold a few low-grade lots to buyers. Many pellet plants in Odisha have taken maintenance downtimes which is why ore demand in the state has declined.”
Not much trading activity was witnessed for higher grade fines as buyers remained sidelined while pellet offers also moved south.
Steelmakers remained cautious about booking material this week as they are expecting a INR 300-500/t ($4-6/t) drop in iron ore prices in the first or second week of April as supplies will improve with miners’ ECs being restored.
Rational:
- T1- No deal was recorded in this publishing window hence not taken for price computation. These were given 0% weightage for index calculation.
- T2- BigMint received twenty-one (21) offers and indicative prices under T2 trade deals in this publishing window. sixteen (16) were taken into consideration and given 100% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document Click here.
Factors affecting prices-
- Pellet offers fall in domestic, export markets: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil fell by around INR 200/t ($2.4/t) w-o-w. The current assessment stands at INR 7,700/t ($92/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur remained stable w-o-w at INR 8,500/t ($105/t) exw on 29 March. BigMint’s India pellet (Fe 63%, 3% Al) export index (FOB east coast) inched down by $3/t to $93/t on 27 March. The seaborne market for Indian material continued to face bearish sentiments as bids dropped further this week amid a lack of buying interest.
- Export offers under pressure: BigMint’s weekly Indian low-grade iron ore fines (Fe 57%) export index remained largely stable w-o-w at $58.5/t FOB east coast on 28 March. No deals were heard for Fe 57% fines in this publishing window amid bearish market sentiments. However, a deal was concluded for low-grade fines (Fe 54.3%) at around 30% discount on the index. However, this deal is yet to be confirmed.
- Sponge iron prices edge up in Rourkela: BigMint’s assessment for sponge iron C-DRI (FeM 80%) prices in Rourkela rose by INR 650/t ($8/t)w-o-w to INR 27,200/t ($328/t). Meanwhile, steel billet (100*100 mm) prices in Rourkela increased by INR 700/t ($9/t)w-o-w to INR 39,400/t ($479/t) today.
Outlook
Iron ore prices in Odisha may remain under pressure in the coming days as issuance of fresh EC limits from the new fiscal is likely to lead to increased supplies in the market. Moreover, export market sentiments also remain bearish.