India: Iron ore concentrate prices fall INR 350/t as pellet prices drop

Iron ore concentrate prices in Jabalpur, central India, witnessed a downward trend this week amid a correction in pellet prices. SteelMint's index for Fe 63% concentrate prices currently stands at around INR 5,350/tonne (t) exw, down INR 350/t as against the last assessment on 4 February, 2023.

Meanwhile, two deals were reported out of which only one deal of 20,000 t concluded at INR 5,500/t exw was taken into consideration in the T1 trade of the index. Offers were heard around INR 5,500-6,000/t exw, while bids were lower by INR 300-500/t than current offers, sources informed.

Raipur-based pellet producers have reduced their offers by INR 300/t ($4/t) to INR 9,900-10,200/t ($120-123/t) exw yesterday from INR 10,100-10,200/t ($122-123/t) exw. Godawari Power and Ispat Limited (GPIL) has decreased domestic pellets (Fe63.5%, +/-0.5) offers by INR 300/t ($4/t) to INR 10,200/t exw ($123/t) from INR 10,500/t exw ($127/t) on 16 January.

SteelMint's bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 10,100/t DAP Raipur, down INR 50/t compared to the last assessment on 3 February. Despite the drop in offers, buyers are not aggressive in booking material due to the drop in sponge iron and billet prices.

Outlook

Iron ore concentrate prices might fluctuate in the near term because of deals getting concluded at lower levels. However, the deciding factor may be the movement of iron ore and pellet prices.