India: Iron ore concentrate prices stable; market awaits NMDC price revision

Iron ore concentrate prices in Jabalpur, central India, remained stable this week. Steady pellet and Odisha iron ore prices have kept concentrate prices supported, SteelMint understands.

SteelMint's index for Fe63% concentrate is at around INR 3,800/tonne (t) exw, remaining stable since the previous assessment on 5 August.

Rationale:

• Two (2) 30,500 t deals were heard closed at INR 3,800/t exw and were considered as T1 trades for index calculation and given 50% weightage.
  
  
• Nine (9) offers, bids, and indicative prices were reported, with seven (7) of them being considered as T2 trades and receiving 50% weightage.
  
  

Factors supporting prices:

• Stability in pellet prices: SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stayed steady at INR 9,050/t DAP Raipur on 8 August, 2023, compared to the previous evaluation on 4 August. According to sources, purchasers have enough pellet inventories for the coming days due to aggressive bookings last week. Some price increases in semi-finished and finished steel have helped to support pellet prices in the region.
  
  
• Odisha iron ore prices unchanged w-o-w: SteelMint's weekly Odisha iron ore fines (Fe 62%) index remained unchanged at INR 4,200/t ex-mines on 5 August, 2023, compared to the previous assessment on 29 July.
  
  

Outlook

The iron ore concentrate market remained unsettled this week, with buyers anticipating a further reduction in offers, with some bids reported at approximately INR 3,600/t exw. At the same time, sellers anticipate an upward price correction due to supporting pellet prices. Meanwhile, market participants are looking forward to NMDC's iron ore price revision for August exports.