India: Iron ore concentrate prices stable on supportive pellet prices

Iron ore concentrate prices in Jabalpur, central India, remained unchanged this week due to stability in pellet and iron ore prices in Odisha.

SteelMint's index for Fe 63% concentrate prices currently stands at around INR 3,050/tonne (t) exw, stable as against the last assessment on 24 September. Some offers were also heard higher at INR 3,250/t exw, but no deals were concluded so far at these rates.

Meanwhile, a deal of around 12,000 t was heard at INR 3,100/t this week, which was taken into consideration in the T1 trade of the index.

Factors keeping prices stable

• Stability in pellet prices: SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,100/t DAP Raipur on 27 September. Buyers are gradually showing some interest in buying pellet, although bulk bookings are still absent. Buyers are mostly opting to monitor the market and are waiting for NMDC's iron ore price revision.
  
  
• Odisha iron ore prices up w-o-w: SteelMint's weekly Odisha iron ore fines (Fe 62%) index increased by INR 100/t to INR 3,500/t ex-mines. As per sources, shortage of high-grade ore and improved participation in OMC's auction pushed up prices slightly.
  
  

Outlook

Iron ore concentrate prices are likely to remain supported as the monsoon season is almost over. Meanwhile, NMDC's price announcement is also round the corner, which may influence prices.