India: Iron ore concentrate prices edge up; market waiting for OMC auction results

Iron ore concentrate prices in Jabalpur, central India, increased this week on active trades at current offers. Meanwhile, market participants are eagerly waiting for Odisha Mining Corporation's (OMC) iron ore auction for better price clarity.

OMC has scheduled an auction for 900,000 tonnes (t) of iron ore - 494,000 t fines (Fe54-64%) and 409,000 t lumps (Fe62%) - on 16 March, 2023. The miner has increased the base prices for fines by INR 1,050/t and has rolled over prices for most of the lump lots except two by up to INR 650/t compared with the auction held on 17 February.

SteelMint's index for Fe63% concentrate currently stands at INR 5,400/t exw, up INR 50/t exw as against the last assessment on 11 March. Some offers were also heard at a higher level of INR 5,700/t exw.

Meanwhile, deals of 48,000 t were reported at around INR 5,350-5,450/t exw, which were taken into consideration as T1 trade for index calculation and given 50% weightage. Six (6) firm offers and indicative prices were reported, out of which four (4) were taken into consideration in T2 and given the balance 50% weightage.

Stability in Odisha iron ore prices has lent support to iron ore concentrate prices, SteelMint understands. SteelMint's weekly Odisha iron ore fines (Fe 62%) index remains stable at INR 5,700/t ex-mines, as per the latest assessment. Most miners are holding back offers due to dispatch-related issues, while some of them have nearly exhausted their EC limits for this fiscal. The market has remained subdued after the Holi holidays.

Outlook

Iron ore concentrate prices are expected to remain supported in the near term in view of active trade happening at current offers.