India: Iron ore concentrate prices stay supported by active trade

Iron ore concentrate prices in Jabalpur, central India, remained supported this week on active trades at current offers.

SteelMint's index for Fe63% concentrate prices currently stands at INR 5,600/tonne (t) exw, stable as against the last assessment on 7 April, 2023.

Rationale:

• Two deals of Fe63% of 12,000 t and 16,000 t were heard concluded at INR 5,600/t exw, each of which was taken into consideration as T1 trade for index calculation and given 50% weightage. Meanwhile, one deal of Fe62% of 20,000 t was also heard at INR 5,200/t exw.
  
  
• Five (5) 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's iron ore prices has also lent support to iron ore concentrate prices, SteelMint understands. SteelMint's weekly Odisha iron ore fines (Fe62%) index remained stable at INR 5,700/t ex-mines, as assessed on 7 April, 2023. Lower trade volumes amidst a fall in pellet prices kept iron ore prices stable. However, no auctions of iron ore in Odisha were conducted during the entire week.

Meanwhile, falling pellet prices might weigh on iron ore concentrate prices. SteelMint's bi-weekly domestic pellet (Fe63%) index, PELLEX, decreased by INR 250/t to INR 9,350/t DAP Raipur on 11 April, 2023 compared to the previous assessment on 7 April. Trade was muted as prices of billets, rebars, and wire rods dropped this week.

Outlook

With pellet prices falling, there may be some pressure on iron ore concentrate prices.