SteelMint’s weekly Odisha iron ore fines index (Fe 62%) fell by INR 100/t w-o-w to INR 5,550/t ex-mines. Owing to low demand, fall in pellet and sponge prices has put Odisha iron ore prices under pressure, the index hitting a three-months low.
Rationale:
- T1- No deal has been reported for Fe 62% fines, hence, T1 trade is given 0% weightage. However, one of the pellet makers in eastern India concluded a deal for around 25,000-30,000 t iron ore fines for Fe 60% grade at around INR 4,300/t (ex-mines, includes royalty, DMF and NMET) recently.
- T2- SteelMint received eight offers and indicative prices under T2 trade deals in this publishing window out of which four of them were taken into consideration and were given 100% weightage. To check SteelMint’s iron ore assessment, pricing methodology and specification documents Click here.
Odisha iron ore prices:
Market awaits OMC auction results – Market participants are waiting for the next OMC (state PSU miner) auction scheduled on 19th May which may provide a better price clarity. Buyers expect a correction in prices in the near term. Around 971,000 t of lump ore and 1.285 mnt of fines will be put up for the auction. The base price of the auction is yet to be disclosed.
Pellet and sponge prices continue to exhibit a downtrend: Pellet prices in Barbil have decreased sharply, as per SteelMint’s assessment. The current assessment for pellets (Fe 63%) stands at INR 9,350/t exw-Durgapur, down by another INR 650/t compared to the prices a week ago. SteelMint’s daily sponge iron, CDRI, index is assessed at INR 35,950/tonne (t) exw-Rourkela on 14 May 2022. On a w-o-w basis, the index fell by INR 550/t.
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