India: Iron ore concentrate prices inch up, trade muted

Iron ore concentrate prices in Jabalpur, central India, have increased this week due to stability in pellet and Odisha's iron ore prices.

SteelMint's index for Fe 63% concentrate prices currently stands at around INR 3,150/tonne (t) exw, a rise of INR 50/t as against the last assessment on 10 September. Some offers were also heard higher at around INR 3,200-3,300/t exw.

However, no active deals were reported this week as sellers are mostly focused on completing previous purchase orders, SteelMint learnt from various sources.

Factors supporting iron ore concentrate prices:

• Stability in pellet prices: SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,100/tonne (t) DAP Raipur on 13 September, 2022. Improved trade deals were seen amid lower offers and sponge iron price recovery. However, sellers have opined that pellet prices have largely bottomed out and there is little scope for any significant correction.
  
  
• Iron ore prices remain largely stable: SteelMint's weekly Odisha iron ore fines (Fe 62%) index has remained largely stable at INR 3,450/t ex-mines. However, buyers are still not active in placing inquiries for iron ore given pending deliveries of previous orders.
  
  

Outlook

Iron ore concentrate prices are likely to remain supported after the end of the monsoon. However, the deciding factor could be the movement in pellet and iron ore prices.