India: Iron ore concentrate prices rise INR 150/t ($2/t) post hike in offers; trades yet to pick up

• Sellers raise offers by INR 200-300/t ($2-4/t)
  
  
• Further hike likely amid steel, sponge recovery
  
  

This week, iron ore concentrate prices in Jabalpur, central India, saw an uptick, driven by higher offers from certain sellers, who lifted tags by INR 200-300/t ($2-4/t). Positive sentiment from the Odisha iron ore 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 4,900/tonne (t) ($58/t) exw-Jabalpur, up by INR 150/t ($2/t) from the previous assessment on 2 November 2024. While some offers were also noted at the higher level of INR 5,100/t ($60/t) exw, no transactions were officially confirmed at that price.

"Although offers have increased, trades are yet to pick up. Improved sentiments from the steel and sponge markets are expected to provide further support to prices, with a further rise possible," a Jabalpur-based seller said.

Another seller from the region explained, "Aggressive deals made earlier led to an inventory shortage, but sellers continued accepting purchase orders, resulting in increased pending deliveries. With the market still in a festive mood and workers yet to return, activity remains subdued."

Rationale

• One (1) trade of 20,000 t was recorded in this publishing window and was considered under T1 trade. It was accorded 50% weightage.
  
  
• Eight (8) offers and indicative prices were reported, and seven (7) were taken into consideration as T2 trades, which received 50% weightage.
  
  

Factors driving prices

• Odisha iron ore fines index holds steady w-o-w: BigMint's Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,600/t ($66/t) ex-mines on 2 November 2024. Odisha's iron ore market remained stable, as participants took a break from trading activities due to the Diwali festivities. Iron ore prices stayed at last week's levels, with minimal fluctuations observed, as miners, traders, and buyers largely remained away from the market. Trades were mostly on hold, as buyers showed no interest in fresh deals, likely expecting a post-festival adjustment period.
  
  
• Sponge PDRI prices rise over INR 200/t w-o-w: BigMint's sponge (PDRI) index increased w-o-w by INR 250/t ($3/t) exw-Raipur on 6 November 2024. The price rise can be largely attributed to a surge in bookings following the holidays, driven by increasing steel prices that have supported higher offers.
  
  

Outlook

Iron ore concentrate offers are likely to stay supported, with a possible increase, owing to the positive sentiment in the iron ore market and a recovery in the sponge and steel sectors. However, market dynamics will depend on finished steel market sentiments in the coming week.