India: Iron ore concentrate prices remain stable; all eyes on NMDC, OMC auctions

• Pellet, iron ore markets remain dull
  
  
• Extended monsoon weighs on prices
  
  
• Buyers look forward to price drops
  
  

Iron ore concentrate prices in Jabalpur remained unchanged this week. However, weak sentiments in the pellet and Odisha iron ore markets, along with the extended monsoon, have emerged as matters of concern. Buyers are hoping for price reductions, as they seek material at lower rates. Additionally, the market is awaiting the price announcements from the National Mineral Development Corporation (NMDC) and the Odisha Mining Corporation Limited (OMC) auctions for further clarity and market direction for the month.

BigMint's weekly iron ore concentrate index was assessed at around INR 3,850/tonne (t) ($46/t) exw-Jabalpur, unchanged from the previous assessment on 14 September 2024.

"There have been no changes in offers, as sentiments are not supportive. NMDC and OMC price revisions will provide some clarity now," 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 22,000 t were recorded at INR 3,850/t ($46/t) in the publishing window. These were accorded 50% weightage.
  
  
• Eight (8) offers and indicative prices were reported, out of which seven (7) were taken into consideration as T2 trades, receiving the balance 50% weightage.
  
  

Market highlights

• Pellet prices remain largely stable: BigMint's bi-weekly domestic pellet (Fe 63%) index dropped by INR 50/t ($1/t) to INR 8,600/t ($103/t) DAP Raipur as of 17 September 2024, against 13 September. According to sources, trade activity was slow due to reduced interest from steelmakers in Raipur. Pellet buyers were cautious about new transactions, awaiting the results of OMC's iron ore auction. Major plants have sufficient raw material inventory for the coming weeks, which is why they have avoided purchasing at current prices.
  
  
• Odisha iron ore fines hold steady w-o-w: BigMint's Odisha iron ore fines (Fe 62%) index remained stable at INR 4,200/t ($50/t) ex-mines as of 14 September. Iron ore prices in the Odisha region remained flat, with the market witnessing slow trading activity amid raw material shortages. Meanwhile, some miners were out of the market. As per sources, market sentiments remain weak due to sluggish price movements in the domestic steel segment.
  
  

Outlook

Iron ore concentrate prices are expected to remain under pressure due to the slowdown in the domestic and export markets, keeping buyers positive. Additionally, the extended monsoon in Jabalpur has been weighing on prices. However, the market outlook is expected to become clearer following OMC's iron ore auction, scheduled for later this week.