India: Demand-supply mismatch, active deals push up iron ore concentrate prices

Iron ore concentrate prices in Jabalpur, central India, increased this week in recently concluded deals.

SteelMint's index for Fe 63% concentrate prices currently stands at around INR 3,150/tonne (t) exw, a rise of INR 150/t as against the last assessment on 3 September. Some offers were also heard higher at around INR 3,200-3,500/t exw.

Meanwhile, active deals of around 77,000 t were recorded at around INR 2,800-3,300/t this week, which were taken into consideration in the T1 trade of the index.

"Demand and supply gap during monsoon has supported iron ore concentrate prices," said a buyer source.

Also, SteelMint's weekly Odisha iron ore fines (Fe 62%) index remained stable at INR 3,400/t ex-mines. However, apart from purchases in auctions, no other deal was reported this week, as market participants did not show much interest in offers prevailing in the market, given the general decline in pellet and sponge iron offers.

Outlook

Iron ore concentrate prices are likely to remain supported after the end of the monsoon. However, the deciding factor could be the movement in pellet and iron ore prices.