- Pellets, semis prices rise w-o-w
- EC limits of some miners expire for FY’25
Odisha’s iron ore market remained firm this week as supply constraints continued to influence price dynamics. Market participants reported that uncertainty prevailed regarding price trends, with limited material availability in key mining regions.
BigMint’s Odisha iron ore fines (Fe 62%) index increased by INR 50/t ($2/t) w-o-w to INR 5,100/t ($56/t) ex-mines on 8 March. Around 32,000 t of iron ore fines (Fe60-62%) deals were concluded this week by the merchant miners. Overall, around 350,000 t of iron ore (fines and lumps) deals were recorded from Odisha this week.
A buyer commented: “We are securing material only on as-needed basis as prices remain high. The market lacks fresh offers from miners, pushing buyers towards traders.”
Some miners have already exhausted their Environmental Clearance (EC) limits for the current fiscal year and are only delivering material of previously booked deals. Meanwhile, a few key miners are only accepting orders at elevated prices due to supply crunch.
A trader based in Odisha informed, “High-grade iron ore is not available, making it difficult for buyers to source quality material. Demand has softened slightly as many steelmakers have already secured their March requirements.”
The market remained slightly cautious about the new order following material shortage in the market. Some key buyers are waiting for the March OMC iron ore auction to conclude bulk purchases.
Factors affecting iron ore market:
Pellet offers up w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil rose by INR 150/t ($2/t) w-o-w at INR 8,500/t ($99/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur remained stable w-o-w at INR 9,450/t ($109/t) exw on 28 February.
Sponge iron prices rise w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela rose by INR 250/t ($3/t) w-o-w to INR 26,700/t ($305/t) on 8 March. Meanwhile, steel billet (100*100 mm) offers in Rourkela increased by INR 150/t ($2/t) w-o-w to INR 38,900/t ($446/t) today.
Rationale
- T1 – Three (3) deals of Fe62% fines were recorded in the publishing window, and two (2) were considered for price computation and given a 50% weightage for index calculation.
- T2 – BigMint received twenty-seven (27) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Twenty three (23) were taken into consideration and given a 50% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.
Outlook
According to BigMint analysis, iron ore prices in the eastern part of the country may remain rangebound towards the end of this fiscal year. Trades may remain low in the coming days as some more miners exhausting their EC limits.
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