India: NMDC cuts iron ore prices by up to INR 650/t ($8/t) for Jul’25 amid sluggish steel market sentiments

• Weighted average bids drop m-o-m in OMC’s iron ore auction
• NMDC’s auction from Chhattisgarh sees subdued response

India’s largest merchant iron ore mining company, NMDC, has decreased list prices of iron ore CLO (calibrated lump ore) and fines, BigMint learnt from sources. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 6,400/tonne (t) ($75/t) and of iron ore fines (-10 mm, Fe 64%) at INR 4,850/t ($57/t), a decrease of INR 650/t ($8/t) and 500/t ($6/t), respectively.

Prices are on FOR basis from the miner’s Bacheli complex and include royalty, DMF and NMET.

Factors behind price cut:

• India steel index drops as market downtrend deepens: The domestic steel market remained under acute pressure, as prices continued on their downward trajectory. BigMint’s India steel composite index fell 0.7% week-on-week as of 27 June 2025, with long steel witnessing a steeper decline than flat products. Throughout the month, the rebar index plunged nearly 5%, while the HRC index saw a milder drop of just 1%, partly supported by safeguard duties that helped shield flat steel prices from the impact of weakening global trends.
• Domestic pellet index drops over INR 150/t m-o-m: BigMint’s monthly average domestic pellet index, PELLEX, decreased by around INR 175/t ($2/t) m-o-m in June to INR 9,150/t ($107/t) DAP Raipur. Buyers remained hesitant to close deals amid falling sponge iron and semi-finished steel prices, with the continued decline in downstream products rendering pellet purchases unviable for many steelmakers.
• Bids fall by INR 250/t ($3/t) in OMC’s auction: In OMC’s auction held on 19 June for 1.073 million tonnes (mnt) of iron ore fines (Fe 51–65%), around 1.025 mnt (95%) was booked across lots at base prices ranging from INR 3,600-5,600/t ($42-65/t) ex-mines, with certain lots fetching premiums of INR 50-950/t ($1-11/t). The weighted average bid declined by INR 250/t ($3/t) m-o-m, following a base price cut of INR 500–700/t ($6-8/t) by OMC. Softer pellet and steel prices contributed to the weaker bidding response.
• NMDC’s Chhattisgarh iron ore auction receives weak response: NMDC auctioned 111,500 t of iron ore from its Bacheli mines on 12 June, with over 95% remaining unsold. Only 4,000 t of Baila-sized lumps (10–20 mm, Fe 65.5%) was booked at the base price of INR 6,500/t, while 21,500 t of DRCLO (10–40 mm, Fe 67%) and 86,000 t of fines (Fe 64%) received no bids. Prices were quoted on an FOR basis, inclusive of royalty, DMF, and NMET. Another auction held on 19 June failed to attract any response, with the entire quantity remaining unsold.