India: Iron ore concentrate prices drop on fall in pellet prices

The lowering of bids for both pellets and iron ore concentrate, amid a decline in prices of the former, has weighed down on the latter's offers by Indian players. SteelMint's assessment for Fe 63% concentrate stands at INR 6,250/tonne (t) exw, lower by INR 150/t w-o-w.

Factors behind drop in prices of concentrates:

• Odisha's prices correct: Odisha's iron ore prices were corrected and the market awaits NMDC's revision. Odisha iron ore fines index (Fe 62%) decreased by INR 150/t w-o-w to INR 6,150/t ex-mines. At the same time, NMDC's price revision is round the corner and is expected to be out shortly.
  
  
• Recent drop in pellet prices: SteelMint's bi-weekly domestic pellet (Fe 63%) prices stood at INR 13,600/t DAP Raipur on 29 March, 2022, down INR 300/t compared to the last assessment on 25 March, 2022. The decrease in sponge iron prices on lower bids resulted in a decline in bids of pellets.
  
  

In the view of increasing demand for iron ore concentrates in the last few years, several plants, including Pacific Iron, Geomin and Jakhodia Minerals are planning capacity expansion. Some greenfield projects are also in the pipeline. Thus, iron ore concentrate prices are likely to remain range-bound or edge lower from current prices levels.