India: Iron ore concentrate prices fall amid prevailing weak market sentiments

Iron ore concentrate prices witnessed a marginal decline this week amid falling pellet and iron ore prices. Meanwhile, buyers are still holding back purchases on expectations of further price cuts.

SteelMint's index for Fe63% concentrates currently stands at around INR 3,200/tonne (t) exw, a drop of around $20/t w-o-w.

"Amidst weak iron ore market sentiments and bid-offer disparities, we are planning to suspend operations," a Jabalpur-based supplier told SteelMint.

Factors weighing on concentrate prices

• Drop in pellet prices: SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 7,450/t DAP Raipur on 21 June, 2022, down by around INR 200/t compared to the last assessment on 17 June. Raipur-based pellet makers kept the offers stable at INR 7,500/t exw ($96/t). However, one major pellet-maker still kept sales closed.
  
  
• Iron ore prices drop to two-year low: SteelMint's weekly Odisha iron ore fines index (Fe 62%) fell further by INR 150/t w-o-w to INR 3,150/t ex-mines. With a few pellet-makers having cut production capacity, iron ore fines bookings remained slow. The index dropped to a nearly two-year low amid restricted trade activities.
  
  

Outlook

Iron ore concentrate prices are likely to remain under pressure amid falling pellet and iron ore prices and the approaching monsoon. Also, as buyers are holding back purchases, offers may see some correction in the near term.