India: Iron ore concentrate prices stable w-o-w; market awaits NMDC's price revision

Iron ore concentrate prices in Jabalpur, central India, remained stable w-o-w this week. Meanwhile, steady pellet prices in majority of the key markets have kept concentrate prices supported, SteelMint understands.

Rationale:

• One (1) deal of around 30,000 t was heard concluded and taken into consideration as T1 trade for index calculation and given 50% weightage.
  
  
• Seven (7) offers, bids and indicative prices were reported out of which five (5) were taken into consideration as T2 trade and accorded the balance 50% weightage.
  
  

What factors are supporting prices?

• Pellet prices range-bound: SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, inched down by INR 50/t to INR 9,000/t DAP Raipur on 4 July 2023, as compared to the last assessment on 30 June. Deals of 5,000 t were recorded at INR 9,050/t (Fe 63%) DAP Raipur. Buyers are currently engaging in need-based procurement as semi-finished and finished steel prices decreased in the Raipur market. Market participants are waiting for NMDC's iron ore price revisions.
  
  
• Odisha iron ore fines index falls: SteelMint's weekly Odisha iron ore fines (Fe 62%) index decreased by INR 250/t to INR 4,950/t ex-mines on 1 July, 2023 compared to the last assessment on 24 June. High-grade iron ore (Fe 62%) deals remained limited, however, low-grade deals were happening in the market, reported sources. As per sources, buyers are currently booking low-grade iron ore (fines Fe 57-59%) from Odisha but due to cost issues, they are booking high-grade material from Chandrapur, Maharashtra and blending it.
  
  

Outlook

As per sources, iron ore concentrate prices are likely to remain supported in the near term. However, fall in buyers' bid prices and NMDC's upcoming iron ore price revision for July dispatches will emerge as the deciding factors.