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

• Buyers, bids remain on lower side
  
  
• Sellers unwilling to reduce offers
  
  

Iron ore concentrate prices in Jabalpur remained unchanged this week. Recovery in pellet prices and decent deals at current offers have kept concentrate prices supported.

Buyers are anticipating price reductions as they seek material at lower rates. However, sellers are reluctant to lower their offers, instead planning to raise them. Additionally, the market awaits the National Mineral Development Corporation's (NMDC) price announcement for February.

BigMint's weekly iron ore concentrate index was assessed at INR 4,600/tonne (t) ($53/t) exw-Jabalpur, unchanged from the previous assessment on 25 January.

"The market remains supported due to active deals of moderate quantities, while bulk inquiries are currently absent", said a Jabalpur-based producer.

Throwing light on the current market dynamics, a Jabalpur-based seller commented, "Iron ore quality in the region is declining, leading to a lower concentrate grade of Fe 62-62.5%."

Rationale

• Two (2) trades of 16,000 t were recorded in the publishing window, and only one was taken into consideration, receiving 50% weightage.
  
  
• Eight (8) offers and indicative prices were reported, out of which seven (7) were taken into consideration as T2 trades, which received the balance 50% weightage.
  
  

Pellet prices in Raipur rose earlier in the week, driven by increased offers from local producers. The uptrend was further supported by a rise in sponge PDRI and billet prices, along with active pellet export deals from the East Coast.

BigMint's bi-weekly domestic pellet (Fe 63%) index climbed by INR 250/t ($3/t) to INR 9,750/t ($113/t) DAP Raipur on 28 January compared to the previous assessment on 24 January. However, market activity remained muted despite the price hike, as buyers remained cautious before committing to higher-priced raw materials.

However, iron ore prices declined this week following a revision in offers, driven by a drop in OMC auction bids and an increasing gap between bid and offer prices in the domestic market. Although need-based trades were executed at adjusted offers, overall volumes remained low as buyers exercised caution.

BigMint's Odisha iron ore fines (Fe 62%) index dropped by INR 100/t ($1/t) w-o-w to INR 4,900/t ($57/t) ex-mines on 25 January.

Outlook

The market is anticipated to remain volatile, with limited transactions occurring amid bid-offer disparity. However, clarity is expected to improve after NMDC's iron ore price revision, according to market sources.