India: Iron ore concentrate prices rise by INR 300/t ($4/t) amid hike in offers

• Sellers hike offers by INR 200-300/t
  
  
• Trades conclude at increased offers
  
  
• Hike in pellet, iron ore prices support offers
  
  

Iron ore concentrate prices in Jabalpur, central India, saw a significant increase this week, driven by higher offers from sellers and positive sentiment from the pellet and Odisha iron ore markets, sources informed to BigMint.

BigMint's weekly iron ore concentrate index reached INR 4,500/tonne (t) ($54/t) exw Jabalpur, marking an increase of INR 300/t ($4/t) from the previous assessment on 5 October, 2024. While some offers were noted at INR 4,600/t ($55/t) exw, no transactions were officially confirmed at that price.

In addition to supportive sentiments from the pellet and iron ore markets, another key factor driving price increases is the railway's restrictions along this route due to ongoing maintenance work. This has hindered material dispatch for the past 10 to 12 days, a Jabalpur-based seller said.

Rationale:

• Three (3) trades of 100,000 t were recorded in this publishing window, and were considered under T1 trade and were accorded with a 50% weightage.
  
  
• Eight (8) offers and indicative prices were reported and seven (7) were taken into consideration as T2 trades, receiving a 50% weightage.
  
  

• Pellet index rises by INR 200/t ($2/t) w-o-w: BigMint's bi-weekly domestic pellet (Fe 63%) index increased by INR 200/t ($2/t) w-o-w to INR 10,200/t ($121/t) DAP Raipur on 8 October, 2024. Pellet prices in Raipur remained supportive, amid moderate trading activity. Positive sentiment in the sponge iron and billet segments has enhanced buying confidence in the market.
  
  
• Odisha iron ore fines index rises w-o-w: BigMint's Odisha iron ore fines (Fe 62%) index increased by INR 300/t ($4/t) w-o-w to INR 4,800/t ($57/t) ex-mines as of 28 September, 2024. Iron ore prices in the Odisha region surged this week, driven by higher offers from merchant miners and reduced dispatches caused by the prolonged monsoon season. Prices were further supported by positive dynamics in the pellet, sponge, and finished steel markets, with all steel segments showing improvement over the past few days. Additionally, a sudden spike in the global fines index ahead of the Chinese Golden Week holidays also influenced iron ore prices in Odisha.
  
  

Outlook

Iron ore concentrate offers are expected to remain strong, driven by positive sentiment in the Odisha iron ore and pellet markets. Moreover, trading activity is likely to pick up further with the end of the monsoon season in the region.