India: Iron ore concentrate prices remain stable; market awaits NMDC's price revision

• Pellet, iron ore markets remain sluggish
  
  
• Market awaits NMDC's price revision
  
  

Iron ore concentrate prices in Jabalpur remained stable this week. However, weak sentiments in the pellet and Odisha iron ore markets are still a matter of concern. Buyers are hoping for further price drops as they seek material at lower rates, sources informed.

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 7 September 2024.

"There have been no changes in offers, as sentiments are not at all supportive. NMDC's price revision will provide some clarity now," mentioned a Jabalpur-based seller.

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

Rationale

• Four (4) trades of 53,000 t were recorded at INR 3,800-3,850/t ($45-46/t) in the publishing window. These were accorded 50% weightage.
  
  
• Nine (9) 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 stable: BigMint's bi-weekly domestic pellet (Fe 63%) index stood steady at INR 8,650/t ($103/t) DAP Raipur as of 10 September 2024, unchanged from 6 September. However, local producers saw muted trading activity, as major buyers had secured substantial quantities last week following a price reduction.
  
  
• Odisha iron ore fines prices inch up: BigMint's Odisha iron ore fines (Fe 62%) index inched up by INR 100/t w-o-w to INR 4,200/t ($50/t) ex-mines as of 7 September. Some miners refrained from offering material in the merchant market because of pending deliveries of older bookings. The demand and supply of iron ore have balanced out, as material supply has tightened due to production disruptions caused by heavy rain and logistical challenges.
  
  

Outlook

Iron ore concentrate prices are expected to face downward pressure due to sluggish demand in both the pellet and iron ore markets and buyers' expectations of further price cuts. However, the market outlook will become clearer following NMDC's upcoming price revision.