India: Iron ore concentrate prices rise to over nine-month high

Iron ore concentrate prices in Jabalpur, central India, witnessed a sharp hike this week following NMDC's recent increase in iron ore prices. Notably, prices rose to over nine-month highs, SteelMint notes.

SteelMint's assessment for Fe 63% concentrate prices currently stands at around INR 5,800/tonne (t) exw, a rise of INR 1,100/t as against the last assessment on 28 January, 2023. However, trades are yet to pick up as no active deal has been reported at current offers.

Reasons for hike in iron ore concentrate prices:

• NMDC's price hike: India's largest merchant iron ore mining company, NMDC, increased list prices of iron ore recently, SteelMint learned from reliable sources. The company raised prices of lump ores by up to INR 300/t and fines by INR 500/t, effective from 28 January. NMDC fixed prices for lump iron ore (65.5%) at INR 4,800/t, DR CLO (Fe 67%, 10-40mm) at INR 5,820/t and iron fines (64% - 10mm) at INR 3,910/t (FoR prices from Bacheli complex, excluding royalty, DMF and NMET).
  
  
• Odisha iron ore prices rise to over 8-month high: SteelMint's weekly Odisha iron ore fines (Fe 62%) index rose by INR 250/t to INR 5,250/t ex-mines (including royalty, DMF and NMET). The index rose to over an eight-month high. These levels were last seen in mid-May 2022. The hike in prices by the miners post-OMC's auction amid the availability of high-grade ore led to the index for fines rising.
  
  
• Pellet prices remain supported: SteelMint's bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 10,250/t, stable compared to the last assessment on 27 January, 2023. Raipur-based pellet producers floated offers at INR 10,100-10,200/t ($123-$125/t) exw. Godawari Power and Ispat offered pellets (Fe 6.5%, +/-0.5) at INR 10,500/t exw ($128/t) as against INR 10,100/t exw ($123/t) previously.
  
  

Outlook

Iron ore concentrate prices are less likely to fall in the near term owing to supportive iron ore market sentiments, SteelMint understands. However, buying interest at current offers could be a deciding factor.