India: Iron ore concentrate prices stable amid weak market sentiments

Iron ore concentrate prices in Jabalpur, central India, remained stable this week amid falling pellet prices and weak market sentiments in Odisha. Meanwhile, buyers are expecting a further drop in offers amid the current dismal market situation.

SteelMint's index for Fe 63% concentrate currently stands at INR 5,200/tonne (t) exw, stable as against the last assessment on 6 May 2023. Some offers were also heard at a higher level of INR 5,300/t exw, although no deal was reported.

Rationale:

• One (1) deal was heard for 40,000 t concluded at INR 5,250/t exw which was taken into consideration as T1 trade for index calculation and given 50% weightage.
  
  
• Five (5) offers and indicative prices were reported, out of which three (3) were taken into consideration as T2 trade and accorded the balance 50% weightage.
  
  

Factors affecting iron ore concentrate prices:

• Fall in pellet prices on limited trade: SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, inched down by INR 100/t to INR 8,750/t DAP Raipur on 9 May compared to the previous assessment on 5 May. The index dropped on limited trade. As per sources, buyers are still awaiting clarity from the market as it is not yet stable.
  
  
• Odisha iron ore fines trade muted: SteelMint's weekly Odisha iron ore fines (Fe 62%) index stood at INR 5,600/t ex-mines on 6 May, stable compared to the last assessment on 29 April, as trade was less active. As per sources, miners have not yet lowered offers and are holding them firm.
  
  

Outlook

With bearish sentiments prevailing in the pellet and iron ore markets, iron ore concentrate prices may come under further pressure.