India: Iron ore concentrate prices remain flat, market awaits NMDC price revision

• Pellet, iron ore markets remain dull
  
  
• Market players lack price clarity
  
  

Iron ore concentrate prices in Jabalpur remained unchanged this week. However, the weak sentiments in the pellet and Odisha iron ore markets, have emerged as a matter of concern. Buyers are hoping for price reductions, as they seek material at lower rates. Furthermore, the market is awaiting the National Mineral Development Corporation's (NMDC) price announcement for December shipments to gain further clarity.

BigMint's weekly iron ore concentrate index was assessed at around INR 5,000/t ($59/t) exw-Jabalpur, unchanged from the previous assessment on 30 November, 2024.

" The offers still remains supportive, as trades continue to conclude at the current offers. However, NMDC iron ore price revision will provide some clarity now as the pellet and iron ore markets have been volatile recently," observed a Jabalpur-based seller.

On the contrary, a trader told BigMint that, "Prices are likely to go down further."

Rationale

• Two (2) trades of 9,000 t were recorded in the publishing window, and both were taken into consideration, receiving 50% weightage.
  
  
• Seven (7) offers and indicative prices were reported, out of which six (6) were taken into consideration as T2 trades, which received the balance 50% weightage.
  
  

Factors likely to impact concentrate prices:

• Drop in pellet offers by key players: Raipur-based pellet-makers reduced their Fe 63% (+/-0.5%) pellet offers further by INR 300/t ($4/t) to INR 8,700-8,800/t ($103-104/t) exw. However, even after prices were slashed by the local sellers, bid-offer disparity still apparent in the market. BigMint's bi-weekly domestic pellet (Fe 63%) index decreased by INR 200/t ($2/t) to INR 8,950/t ($106/t) DAP Raipur on 2 December compared to the previous assessment on 29 November.
  
  
• Odisha iron ore fines prices drop INR 50/t ($1/t): The iron ore market in Odisha experienced a decline, driven by sluggish market activity and limited trading. Several major miners held back from offering material, which further dampened the overall trading sentiment. The absence of new offers led to a decrease in spot market availability, contributing to a slowdown in transactions. BigMint's Odisha iron ore fines (Fe 62%) index dropped INR 50/t ($1/t) w-o-w to INR 5,250/t ($62/t) ex-mines on 30 November, 2024.
  
  

Outlook

Market participants are closely monitoring the steel, iron ore and pellet sector, hoping for price stabilisation or an uptick that could improve the overall market sentiments. Until then, the market is expected to exhibit volatility, with limited transactions taking place. However, the market outlook is expected to become clearer following NMDC's iron ore price revision, as per a few market sources.