India: SteelMint's Odisha iron ore fines index falls INR 200/t

SteelMint's weekly Odisha iron ore fines (Fe 62%) index decreased by INR 200/t w-o-w to INR 5,100/t ex-mines on 7 October, 2023 compared to the last assessment on 30 September. No deal was reported in this publishing window.

Limited availability of material was reported from miners due to rains. But falling pellet prices and an inactive export market weighed down on iron ore prices in the eastern region. As per sources, the current Odisha iron ore market is volatile with a lack of clarity in prices.

Some major miners are holding their offers and waiting for a clearer price trend to emerge in the coming days. However, ongoing railway track laying work is impacting rake movements over the last few days.

Rationale:

• T1- No deal was reported and not considered for price calculation this week. They were given a 0% weightage for index calculation.
  
  
• T2- SteelMint received eleven (11) offers and indicative prices under T2 trade deals in this publishing window. Seven (7) were taken into consideration and given 100% weightage. To check SteelMint's iron ore assessment, pricing methodology, and specification documents Click here.
  
  

Factors weighing on Odisha iron ore prices:

• Pellet prices fall on lower bids: Pellet prices in Odisha's Barbil fell by INR 100/t compared to last week. The current assessment stands at INR 8,600/t loaded to wagons this week. A drop of INR 50/t was seen in raw pellet (Fe63%, 6-20 mm) prices also in Durgapur, which were assessed at INR 9,050/t exw on 6 October. Active deals at lower offer offers were recorded this week.
  
  
• Sponge prices up in Rourkela: SteelMint's assessment for sponge iron C-DRI (FeM 80%) prices in Rourkela increased by INR 200/t to INR 31,300/t exw on 7 October compared to last week. D-o-d sponge iron prices decreased by INR 250/t. Billet prices increased by INR 600/t w-o-w to INR 43,000/t exw-Rourkela on 7 October.
  
  

Outlook

As per sources, domestic iron ore prices are expected to fall in the coming days as steelmakers anticipate weak sentiments in the market.