India: Iron ore concentrate prices fall w-o-w in recent deals

Iron ore concentrate prices in the Jabalpur region fell by around INR 200/tonne (t) on a weekly basis. SteelMint's index for Fe63% concentrate prices stood at around INR 5,800/t exw.

However, some deals of around 70,000 t were heard this week out of which only 34,000 t were taken into consideration in the T1 trade.

Western and Central India-based pellet makers were heard to have actively booked concentrate at lower offers of around INR 5,500-5,800/t exw.

"Considering the slower domestic pellet market in the past couple of weeks, manufacturers will surely not pay so high for concentrate procurement. Thus, prices had to surely come down amidst slower purchases in the last couple of weeks," said a pellet manufacturer.

However, in recent times, recovery in sponge prices have lent some support to pellet offers. Pellet prices in Durgapur increased today, as per SteelMint's assessment. The current assessment for pellets (Fe 63%) stands at around INR 10,700-10,800/t exw Durgapur, up INR 450/t compared to the last assessment of INR 10,300/t on 15 April.

Outlook

In view of the increasing demand for iron ore concentrates in the last few years, several plants, including Pacific Iron, Geomin, and Jakhodia Minerals, are planning to expand their existing capacity. Some greenfield projects are also in the pipeline.