India: Iron ore concentrate prices under pressure on sluggish market sentiments

• Pellet, iron ore markets remain sluggish
  
  
• Market awaits NMDC's price revision
  
  

Iron ore concentrate prices in Jabalpur remained stable this week. Fewer trades surfaced amid weak pellet and Odisha iron ore markets, along with a bid-offer disparity, contributing to steady prices. However, buyers are still hoping for further price drops as they seek material at lower rates, according to market sources.

BigMint's weekly iron ore concentrate index was assessed at around INR 3,850/tonne ($46/t) exw-Jabalpur, unchanged from the previous assessment on 31 August, 2024.

"We have a decent order and are focused on completing it, so there are no changes in our offers," a Jabalpur-based seller told BigMint.

Rationale:

• One (1) trade of 10,000 t was recorded in this publishing window, and was accorded 50% weightage.
  
  
• Six (6) offers and indicative prices were reported, out of which three (3) were taken into consideration as T2 trades, receiving 50% weightage.
  
  

Why are concentrate prices under pressure?

• Raipur pellet offers fall by INR 300/t: Raipur-based pellet makers have reduced their offers for Fe 63%(+/_0.5%) by INR 300/t ($4/t) to INR 8,600/t ($102/t) exw-Raipur today. However, no transaction was heard at the revised prices. Active buying from Odisha at INR 8,300-8,400/t DAP Raipur and a drop in the P-DRI and finished steel prices led to a fall in Raipur pellet offers.
  
  
• Odisha iron ore prices drop w-o-w: BigMint's Odisha iron ore fines (Fe 62%) index decreased by INR 100/t ($1/t) w-o-w, settling at INR 4,100/t ($49/t) ex-mines as of 31 August. The index has plummeted to a twenty-month low, last seen in November 2022. Over the past week, deals of around 315,000 tonnes (t) of iron ore were closed by private miners in Odisha. Trading activity remained moderate as major buyers had already secured sufficient material during the August auction by the Odisha Mining Corporation (OMC) and remained cautious about engaging in new transactions.
  
  

Outlook

Iron ore concentrate prices are expected to face downward pressure due to sluggish demand in both the pellet and iron ore markets. However, the market outlook will become clearer following NMDC's upcoming price revision.