India: Iron ore concentrate prices fall in recent deals; market awaits NMDC price revision

• Pellet, iron ore markets remain sluggish
  
  
• Further price cuts likely in concentrates
  
  

Iron ore concentrate prices in Jabalpur witnessed a marginal decrease this week. Weak sentiments in the pellet and Odisha iron ore markets after Odisha Mining Corporation's (OMC's) iron ore auction coupled with the fall in bids from the buyers' side in recent deals weighed on iron ore concentrate prices.

BigMint's weekly iron ore concentrate index was assessed at around INR 5,000/tonne (t) ($59/t) exw-Jabalpur, a decrease of INR 50/t ($1/t) from the previous assessment on 23 November, 2024.

"NMDC's price revision will provide some clarity now," said a Jabalpur-based seller.

Rationale

• Two (2) trades of 22,000 t were recorded at INR 5,000/t ($59/t) in the publishing window. These were accorded 50% weightage.
  
  
• Eight (8) offers and indicative prices were reported, out of which seven (7) were taken into consideration as T2 trades, receiving the balance 50% weightage.
  
  

Market highlights

• Pellet prices drop INR 50/t ($1/t) amid limited trade: BigMint's bi-weekly domestic pellet (Fe 63%) index decreased by INR 50/t ($1/t) to INR 9,200/t ($109/t) DAP Raipur on 26 November, 2024 compared to the previous assessment on 22 November. Limited trades were observed due to the disparity between bids and offers. Influenced by weak market sentiments, buyers showed reluctance towards prevailing prices.
  
  
• Odisha iron ore fines prices inch down post-OMC auction: BigMint's Odisha iron ore fines (Fe 62%) index dropped by INR 50/t ($1/t) w-o-w to INR 5,300/t ($63/t) ex-mines on 23 November, 2024. The iron ore market in the region displayed mixed trends following the recent OMC auction. Prices of fines were under pressure due to uncertainty about the offers from miners and weak pellet prices in the eastern region. According to some sources, there is a material shortage in the region, as private miners have already committed large quantities of iron ore, while still fulfilling orders from previous contracts. Steelmakers may gain better price clarity once the miners release new offers.
  
  

Outlook

Iron ore concentrate prices are expected to face downward pressure due to sluggish demand in both the pellet and iron ore markets. Thus, buyers' expect further price cuts in concentrates. However, the outlook will become clearer following NMDC's upcoming price revision.