India: Iron ore concentrate prices rise to over 2-month high in recent deal

• NMDC's price hike supports concentrate offers
  
  
• Some trades conclude at increased offers
  
  

Iron ore concentrate prices in Jabalpur, central India, rose this week following NMDC's recent iron ore price hike and positive sentiment in the pellet and Odisha iron ore markets, keeping concentrate offers supported, according to BigMint.

BigMint's weekly iron ore concentrate index stood at INR 4,200/t ($50/t) ex-works, up by INR 300/t ($4/t) compared to the last assessment on 28 September 2024. The index reached a two-month high, with similar levels last seen in late July this year, as per BigMint data. Some offers were also reported at a higher range of INR 4,400-4,500/t ($52-54/t) ex-works, though no deals were confirmed.

"Offers have increased after NMDC's iron ore price revision, supported by a hike in pellet offers," stated a Jabalpur-based seller.

Rationale:

• Two (2) trades of 30,000 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 50% weightage.
  
  

Why have concentrate offers increased?

• NMDC hikes iron ore prices by up to INR 400/t ($5/t): NMDC increased list prices of iron ore calibrated lump ore (CLO) and fines today by INR 300/t($4/t) and INR 400/t ($5/t) respectively, BigMint learnt from sources. The company's prices are effective from 1 October, 2024. The miner has fixed prices of DRCLO (10-40 mm, Fe 67%) at INR 6,720/t ($80/t) and of iron ore fines (-10 mm, Fe 64%) at INR 5,010/t ($60/t) on FOR basis from its Bacheli complex. Prices include royalty, DMF and NMET charges.
  
  
• Pellet index rises by INR 750/t ($9/t): BigMint's bi-weekly domestic pellet (Fe 63%) index increased by INR 750/t ($9/t) to INR 9,800/t ($117/t) DAP Raipur on 01 October, 2024. One major Raipur-based pellet producer increased its offers by INR 300/t ($4/t), while another one kept its prices stable.
  
  
• Odisha iron ore fines index remains stable w-o-w: BigMint's Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 4,500/t ($54/t) ex-mines as of 28 September, 2024. Iron ore prices in the Odisha region remained supported this week, with trading activity seeing a slight uptick following the recent Odisha Mining Corporation's (OMC's) auction. Some miners increased their offers by INR 250-350/t ($3-4/t), influenced by higher bids in the OMC's auction.
  
  

Outlook

Iron ore concentrate offers are expected to remain strong due to positive sentiment in the Odisha iron ore and pellet markets. Furthermore, trading activity is likely to pick up after the monsoon in the region.