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

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Concentrates

BigMint Bureau

55 Reads

24 Dec 2024, 19:17 IST

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

Trades conclude at lower offers

Buyers expect further price drop

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

BigMint's weekly iron ore concentrate index was assessed at around INR 4,900/tonne (t) ($58/t) exw-Jabalpur, a decrease of INR 50/t ($1/t) from the previous assessment on 21 December, 2024. A few offers at higher levels of INR 5,200/t ($61/t) exw were also reported, but buyers rejected them, preventing any trades from being finalized. A buyer told BigMint, "It should be at this level. However, we haven't been lifting concentrate for the past month."

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

Rationale

Two (2) trades of 32,000 t were recorded in the publishing window. These were accorded 50% weightage.

Nine (9) offers and indicative prices were reported, out of which six (6) were taken into consideration as T2 trades, receiving the balance 50% weightage.

Meanwhile, iron ore prices in Odisha exhibited a mixed trend following the recent OMC auction. While the weighted average bids for fines declined, lump prices saw a slight increase compared to last month's bids. Despite these fluctuations, the auction achieved full success, with 100% of the material sold, indicating strong demand. However, concerns persist regarding material availability, particularly due to the limited supply of higher-grade iron ore from miners. On 21 December 2024, BigMint's Odisha iron ore fines (Fe 62%) index edged down by INR 50/t ($1/t), settling at INR 5,300/t ($62/t) ex-mines.

Outlook

Iron ore concentrate prices are likely to come under pressure due to weak demand in the market. Buyers anticipate further price reductions but the market outlook will become clearer after NMDC's upcoming price revision.