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India: Iron ore concentrate prices stay firm amid pending deliveries

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Concentrates

BigMint Bureau

203 Reads

31 Jan 2024, 19:21 IST

India: Iron ore concentrate prices stay firm amid pending deliveries

Hike in pellet offers keep prices firm

Active response in NMDC CG auction support offers

Sellers focus on completing pending deliveries

Iron ore concentrate prices in Jabalpur, central India, continued to remain stable this week. Active response in NMDC's CG recent iron ore auction followed by upward correction in pellet offers have supported concentrate prices, BigMint noted.

BigMint's bi-weekly index for Fe 63% concentrate currently stood at INR 5,700/t ($69/t) exw, stable, w-o-w.

"Currently, we have not opened new offers as we are completing previous orders," mentioned a Jabalpur-based seller.

Rationale:

No trade was recorded in this publishing window and was accorded with 0% weightage.

Eight (8) offers and indicative prices were reported, out of which, seven (7) were taken into consideration as T2 trades, receiving 100% weightage.

Factors supporting concentrate prices:

Active response in NMDC CG iron ore auction: On 27 January, 2024, NMDC Bacheli had auctioned off 21,000 t of DRCLO (10-40 mm, Fe 67%), which got booked at INR 7,900/t ($95/t) against the base price of INR 7,280/t ($88/t) and 50,400 t of fines (Fe 64%) got booked at INR 5,610/t ($67/t) against INR 5,350/t ($64/t). Also, NMDC Kirandul had auctioned 21,000 t of iron ore fines (Fe 64%) that got booked at INR 5,440/t ($66/t) against the base price of INR 5,350/t ($64/t). Prices are inclusive of royalty, DMF and NMET.

Domestic pellet offers remain supported: A major pellet plant in Raipur has raised offers by INR 300/t ($4/t) to INR 9,700-9,800/t ($117-118/t) exw on 24 January, 2024. Offers increased following the iron ore price revision by NMDC. SteelMint's bi-weekly domestic pellet (Fe 63%) index remained stable at INR 9,850/t ($119/t) DAP Raipur on 30 January, 2024 compared to the last assessment on 25 January, 2024.

Outlook

Iron ore concentrate prices are expected to remain supported in the near-term amid hike in pellet offers. Meanwhile, prices are expected to rise in the coming days as sellers might increase their offers after completing their pending deliveries.