India: Iron ore concentrate prices firm, cautious sentiment prevails on downstream weakness

• Trading remains moderate in the region
  
  
• Buyers seek price reduction post- OMC auction
  
  

BigMint's latest bi-weekly assessment indicates that iron ore concentrate (Fe 62%) prices in Jabalpur remained firm at INR 5,300/t ($58/t) ex-works as of 25 February, unchanged from 21 February and stable on a w-o-w basis.

Despite moderate spot activity, prices have held steady as most suppliers are already booked and are concentrating on clearing pending dispatches. This has limited the availability of fresh offers in the market.

High-grade concentrate prices are also stable. A persistent shortage of high-grade material across the region has prevented any downward correction, even amid softer sentiment in downstream segments. Demand for superior-grade material continues, although overall transaction volumes remain controlled.

Softening sentiment in the finished steel, sponge iron, and pellet segments, coupled with falling bid levels in Odisha Mining Corporation's latest auction, is expected to exert pressure on concentrate prices in the near term.

In its 19 February 2026 auction, OMC recorded strong booking volumes but comparatively softer bid levels. Around 99% of the 1.58 mnt of lumps offered were booked at premiums ranging between INR 150-900/t; however, the weighted average bid declined by INR 150/t m-o-m despite a base price hike.

Similarly, for fines, 88% of the 2.25 mnt offered quantity was booked at an average premium of INR 350/t, with bids easing by INR 100/t m-o-m, reflecting cautious buying interest while keeping overall market sentiment broadly stable.

A Jabalpur-based seller informed BigMint, "We are still in the process of dispatching older orders. Buyers are pushing for price reductions, citing the softer bids in OMC's auction. Typically, such a scenario does not unfold when bookings are strong, but this time the pressure is clearly visible."

He further added, "Clear market direction is likely to emerge only after China resumes full-fledged activity. Until then, other segments may continue to witness a gradual downward drift."

Another local supplier echoed similar sentiments, stating, "Given the prevailing market mood, discussions around price cuts are ongoing. However, no fresh bookings have been concluded at reduced levels as we remain focused on completing our existing commitments."

Rationale

• Two (2) trade was recorded in this publishing window and only one (1) was taken into consideration, receiving a 50% weightage.
  
  
• Ten (10) offers and indicative prices were heard, and seven (7) were taken into consideration as T2 trades, receiving 50% weightage.
  
  

Factors to watch

• Pellet prices remain largely stable in Raipur: PELLEX, BigMints bi-weekly domestic pellet (Fe 63%) index for Raipur, down by INR 50/t to INR 10,500/t ($116/t) DAP on 24 February, compared to the previous assessment on 20 February. Pellet prices in the Raipur region remained under sustained pressure during the week, weighed down by persistently weak demand and a sharp correction in downstream steel prices. The notable decline in sponge iron and billet rates has dampened overall buying sentiment, leading most market participants to maintain a cautious and need-based procurement approach.
  
  
• Odisha iron ore prices fall by INR 200/t ($2/t) wo-w: BigMint's Odisha iron ore fines (Fe 62%) index declined by INR 200/t w-o-w to INR 5,800/t ($64/t) ex-mines on Saturday, largely mirroring the softer bid levels observed in the latest auctions conducted by Odisha Mining Corporation. Market sentiment remained cautious, as auction-cleared prices trended lower compared to the previous month, consequently weighing on spot market expectations and limiting aggressive buying activity.
  
  
• Sponge PDRI prices drop INR 1,200/t ($13/t) w-o-w: Sponge PDRI prices in Raipur declined by INR 1,200/t ($13/t) w-o-w to INR 26,100/t ($287/t), driven by subdued market sentiment. Buyers remained cautious amid an uncertain market environment, leading to a drop in prices and limited transactions. Adequate bookings from the previous day prompted buyers to hold back on fresh commitments.
  
  

Outlook

Iron ore concentrate prices are expected to either soften or remain range-bound in the near term. While sellers are currently focused on fulfilling pending orders, fresh offers are likely to emerge once these commitments are cleared. However, continued weakness in downstream segments is expected to exert pressure on concentrate prices in the coming weeks.