India: Iron ore concentrate prices inch down in recent deal

Iron ore concentrate prices in Jabalpur, central India, witnessed a marginal downward trend this week with a correction in Odisha iron ore prices and falling bids from the buyers' side. Decrease in base price in Odisha Mining Corporation's (OMC's) recent iron ore fines auction has also affected concentrate prices, SteelMint noted.

SteelMint's index for Fe 63% concentrate currently stands at INR 4,200/t exw, down INR 50/t as against the last assessment on 17 June, 2023. Some offers were also heard at a higher level of INR 4,600/t exw.

Rationale:

• Two (2) deals of around 35,000 tonnes (t) were heard concluded, out of which only one (1) was taken into consideration as T1 trade for index calculation and was given 50% weightage.
  
  
• Six (6) offers and indicative prices were reported out of which only three (3) were taken into consideration as T2 trade and accorded the balance 50% weightage.
  
  

Factors affecting iron ore concentrate prices:

• Pellet prices remain unchanged w-o-w: SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained stable w-o-w at INR 9,100/t DAP Raipur on 20 June, 2023. Raipur-based pellet players have kept offers unchanged and are offering at INR 8,900-9,200/t exw.
  
  
• Odisha iron ore prices fall w-o-w: SteelMint's weekly Odisha iron ore fines (Fe 62%) index dropped by INR 300/t w-o-w to INR 5,200/t ex-mines on 17 June compared to the last assessment on 10 June. An active participation from buyers at the OMC's iron ore fines auction due to lower base prices led to a drop in the index. OMC had reduced the base price for fines by up to INR 1,150/t against the last month's auction.
  
  

Outlook

Iron ore concentrate prices might remain under pressure in the near-term amid falling bids. In addition, with monsoon approaching, demand for concentrate would be on the weaker side affecting prices.