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India: Iron ore concentrate prices rise INR 150/t ($2/t), all eyes on OMC auction

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Concentrates

BigMint Bureau

134 Reads

13 Nov 2024, 19:49 IST

India: Iron ore concentrate prices rise INR 150/t ($2/t), all eyes on OMC auction

Trades conclude at higher offers

Market awaits OMC iron ore auction

This week, iron ore concentrate prices in Jabalpur, central India, saw an uptick, driven by deals concluding at higher offers from certain sellers. Positive sentiments from the pellet market, along with a recovery in the sponge and steel sectors, also supported the price rise, sources told BigMint.

BigMint's bi-weekly iron ore concentrate index stood at INR 5,050/tonne (t) ($60/t) exw-Jabalpur, up by INR 150/t ($2/t) from the previous assessment on 9 November 2024.

Moreover, the market is keenly awaiting the iron ore auction of Odisha Mining Corporation Limited (OMC). It is expected to take place on 20 November, 2024, with the base price announcement on 18 November, 2024 which is expected to provide further boost to the market this month, sources informed BigMint.

Rationale:

Two (2) trades of 50,000 t were recorded in this publishing window and were considered under T1 trade. These were accorded 50% weightage.

Nine (9) offers and indicative prices were reported, and seven (7) were taken into consideration as T2 trades, which received 50% weightage.

Meanwhile, pellet prices in Raipur have remained stable this week, reflecting consistent offers from local pellet plants. However, Odisha-based producers have introduced a slight price hike. Trade activity has been moderate, with steelmakers opting for need-based purchases. BigMint's bi-weekly domestic pellet (Fe 63%) index remained unchanged at INR 9,950/t ($118/t) DAP Raipur on 12 November, 2024 compared to the previous assessment on 8 November.

However, sponge iron (PDRI) prices in Raipur went down after witnessing an increase in the previous weeks. BigMint's daily index of sponge PDRI dropped by around INR 200/t ($2/t) w-o-w on 13 November, 2024, impacted by sluggish movements in the semi-finished and finished steel segments, which led to reductions in offers. The downtrend in sponge iron prices could potentially exert downward pressure on iron ore concentrate prices, raising concerns among market participants.

Outlook

Iron ore concentrate offers are expected to remain stable, with a potential rise, driven by optimism in the iron ore market as participants await OMC's upcoming price announcement. However, market dynamics will depend on finished steel and sponge sentiments in the coming week.