India: SteelMint's Odisha iron ore fines index rises for second consecutive week

SteelMint's weekly Odisha iron ore fines (Fe 62%) index increased by INR 100/t w-o-w to INR 4,600/t ex-mines on 9 September, 2023 compared to the last assessment on 2 September. This is the second consecutive week when the index has witnessed a rise. Owing to limited offers from merchant miners amidst pending dispatches, few of them were heard to have held back offers this week.

Rationale:

• T1- One deal was recorded and one was considered for price calculation this week. They were given a 50% weightage for index calculation.
  
  
• T2- SteelMint received eleven (11) offers and indicative prices under T2 trade deals in this publishing window. Ten (10) were taken into consideration and given 100% weightage. To check SteelMint's iron ore assessment, pricing methodology, and specification documents Click here.
  
  

Pellet and Sponge iron market dynamics in Odisha-

• Pellet prices in Barbil, Durgapur inch up: Raw pellet (Fe63%, 6-20 mm) prices in Odisha's Barbil increased by INR 100/t compared to last week. The current assessment stood at INR 8,800/t loaded to wagons on 8 September. Raw pellet (Fe63%, 6-20 mm) prices in Durgapur sharply improved by INR 400/t w-o-w to INR 9,200/t exw on 8 September.
  
  
• Sponge prices down in Rourkela: SteelMint's assessment for sponge iron C-DRI (FeM 80%) prices in Rourkela moved down by INR 750/t to INR 31,550/t exw on 9 September compared to last week. However, m-o-m, sponge iron prices increased by INR 2,500/t. Billet prices also increased by INR 950/t w-o-w to INR 43,550 exw-Rourkela on 9 September. The active trade and increased offers supported semi-finished and finished steel prices in Rourkela.
  
  

Outlook

The market participants are in a wait-and-watch mode. Merchant miners are also holding their iron ore sales till the upcoming OMC auction for the month of September, 2023.