India: Iron ore concentrate prices stable, trade improves

Iron ore concentrate prices in Jabalpur, central India, remained stable w-o-w on active trades at current offers.

SteelMint's index for Fe63% concentrate prices currently stands at around INR 5,600/tonne (t) exw, stable w-o-w. However, not many offers were seen in the market today as most of the market participants were silent amid the end of the current financial year and working on deliveries of previous orders.

Rationale:

• Two deals of 8,000 t and 80,000 t were heard concluded at INR 5,600/t exw each which were taken into consideration as T1 trade for index calculation and given 50% weightage.
  
  
• Four (4) firm offers and indicative prices were reported. All of them were taken into consideration in T2 and accorded the balance 50% weightage.
  
  

Stability in Odisha iron ore prices has also lent support to iron ore concentrate prices, SteelMint understands. SteelMint's weekly Odisha iron ore fines (Fe 62%) index remained stable at INR 5,700/t ex-mines. Lower trade volumes amidst a fall in pellet prices kept iron ore prices stable. Overall, apart from a couple of auctions conducted by JSW Steel and SAIL, trades remained slow.

Outlook

Iron ore concentrate prices are expected to remain supported in the near term in view of active trade happening at current offers. However, a fall in pellet prices amid limited trade could be a deciding factor.