India: Iron ore concentrate prices rangebound in recent deals; likely to rise in near-term

Iron ore concentrate prices in Jabalpur, central India, remained range-bound in recent deals following a hike in pellets and Odisha iron ore prices, SteelMint noted.

SteelMint's assessment for Fe 63% concentrate prices currently stands at INR 3,500/tonne (t) exw, stable as against the last assessment on 3 December.

Meanwhile, deals of 70,000 t were heard at INR 3,200-3,500/t exw this week which were taken into consideration in the T1 trade of the index as against 80,000 t reported on 3 December.

However, an upward correction in concentrate prices is expected amid strong market sentiments for iron ore and pellets.

Factors supporting prices:

• Odisha iron ore fines prices climb to over 6-month high: SteelMint's weekly Odisha iron ore fines (Fe 62%) index has moved up by INR 350/t to INR 4,250/t ex-mines (including royalty, DMF and NMET). The index has jumped to over six-month high, as per data maintained with SteelMint. The majority of Odisha-based miners raised their offers post-rollback of export duties and tight availability of high-grade ore. However, deals at increased offers are yet to be reported.
  
  
• Hike in pellets prices by INR 150/t: SteelMint's bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 8,550/tonne (t), up by INR 150/t compared to the last assessment on 2 December, 2022. Limited trades were reported this week. However, buyers are still away and reluctant to conclude any bulk deal. Improved sponge prices may bring some interest for the buyer in the upcoming days. Today, Raipur-based pellets sellers raised offers by INR 400/t.
  
  

Outlook

Iron ore concentrate prices are less likely to fall in the near-term owing to supportive iron ore market sentiments especially post-export duty roll over, SteelMint observed.