India: SteelMint's Odisha iron ore fines index stable in fresh deals

SteelMint's weekly Odisha iron ore fines (Fe 62%) index remained stable at INR 4,200/t ex-mines on 29 July, 2023 compared to the last assessment on 22 July. The market remained silent this week after the good result at OMC auction in the previous week.

As per sources, buyers are booking small quantities and waiting for a further price cut by miners.

Rationale:

• T1- One deal was recorded and considered for price calculation this week. A deal of 20,000 t iron ore fines (Fe 62%) was heard at INR 4,200/t ex-mines in this publishing window. They were given 50% weightage for index calculation.
  
  
• T2- SteelMint received ten (10) offers and indicative prices under T2 trade deals in this publishing window. Eight (8) were taken into consideration and given 50% weightage. To check SteelMint's iron ore assessment, pricing methodology, and specification documents Click here.
  
  

Factors affecting iron ore prices in Odisha

• Pellet prices drop in Barbil, Durgapur: Raw pellet (Fe63%, 6-20 mm) prices in Odisha's Barbil dropped compared to last week. The current assessment stands at INR 7,450/t loaded to wagons on 28 July, fell INR 200/t w-o-w. Raw pellet (Fe63%, 6-20 mm) prices in Durgapur inched down by INR 100/t to INR 8,000/t exw on 28 July.
  
  
• Sponge prices rise in Rourkela: SteelMint's assessment for sponge iron C-DRI (FeM 80%) prices in Rourkela increased by INR 650/t to INR 27,450/t exw on 29 July compared to last week. Billet prices increased by INR 500/t w-o-w to INR 40,500 exw Rourkela on 29 July. Sponge iron prices increased as production was hampered by monsoon season and demand is on the higher side of the production.
  
  
• Low-grade export market witnesses active deals: SteelMint's weekly India low-grade iron ore fines (Fe 57%) export index remained unchanged w-o-w at $65/t FOB east coast, as assessed on 27 July. The market was optimistic this week as some trades were concluded from eastern and southern India and sellers getting inquiries from the China market. A total of four deals of around 390,000 t were concluded from India in the last one week, as per data recorded by SteelMint. These deals in the export market supported domestic iron ore prices.
  
  

Outlook

During the monsoon season, logistical constraints are likely to keep iron ore movements restricted. Buyers are eyeing a drop in iron ore offers by miners in the upcoming days.