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India: Iron ore concentrate prices hit nearly three-month low in recent trades

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Concentrates

BigMint Bureau

87 Reads

8 Jan 2025, 18:37 IST

India: Iron ore concentrate prices hit nearly three-month low in recent trades

Trades conclude at lower offers

Falling pellet, iron ore prices weigh on offers

Iron ore concentrate prices in Jabalpur witnessed a fall this week. Weak sentiments in the pellet and Odisha iron ore markets coupled with the fall in bids from buyers in recent deals weighed on iron ore concentrate prices. A buyer told BigMint, "Yes, offers have decreased. We also closed a deal since it aligned closely with our bid."

BigMint's bi-weekly iron ore concentrate index was assessed at INR 4,650/tonne (t) ($54/t) exw-Jabalpur, a decrease of INR 150/t ($2/t) from the previous assessment on 4 January, 2025. Prices have fallen to lowest since mid-Oct'24. A few offers at higher levels of INR 4,800/t ($56/t) exw were also reported, but buyers rejected them, preventing any trades from being finalized.

"We have reduced the offers due to the decline in pellet prices and the weak performance of iron ore." said a Jabalpur-based seller.

Another seller from the region mentioned, "Price clarity is pending, with NMDC's pricing yet to be announced."

Rationale

Four (2) trades of 60,000 t were recorded 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.

Factors behind fall in concentrate prices:

Drop in pellet prices: Pellet prices in Raipur have been under pressure in recent days, with no new deals emerging. Market participants cite cautious buyer sentiment and persistent liquidity challenges as key factors behind the stagnation. BigMint's bi-weekly domestic pellet (Fe 63%) index dropped by INR 100/t ($1/t) to INR 9,450/t ($110/t) DAP Raipur on 7 January 2025 compared to the previous assessment on 3 January. Steelmakers and other end-users have reportedly made purchases to meet immediate requirements, avoiding bulk orders amid uncertain market conditions.

Odisha iron ore prices fall INR 50/t w-o-w: Iron ore prices in Odisha remained under pressure in the first week of CY'25 as buyers placed lower bids for raw material purchases. Some miners reduced prices by INR 200-300/t to stimulate trade amid sluggish demand. However, buyers are holding off, expecting further price cuts before finalizing new deals. BigMint's Odisha iron ore fines (Fe 62%) index inched down by INR 50/t ($1/t) to INR 5,200/t ($61/t) ex-mines on 4th January 2025.

Outlook

Iron ore concentrate prices are likely to remain under pressure due to weak dynamics in the pellet and iron ore markets. Although sellers' offers have currently aligned with buyers' bids, the market outlook is expected to become clearer after NMDC announces its price revision.