- OMC hikes base prices by INR 150/t for today’s auction
- Pellet prices increase by up to INR 400/t w-o-w
Iron ore prices in Odisha witnessed an upward trend this week, driven by a rise in base prices set by Odisha Mining Corporation (OMC) and limited availability of material in the open market amid monsoon. Market participants said that several merchant miners were refraining from accepting bulk orders, further tightening supply.
Prices saw an uptick of INR 100-200/t w-o-w, with only a few trades concluded. Bulk orders remained absent in the market.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index rose by INR 200/t ($2.5/t) w-o-w to INR 5,200/tonne (t) ($60/t) ex-mines on 19 July 2025. This week, trading activity has remained somewhat subdued, keeping the volume lower. Approximately 200,000 tonnes of iron ore deals were recorded in the Odisha region this week.
Some high-grade fines deals were concluded at INR 5,000-5,500/t ($58-64/t) ex-mines, amid limited availability of material.
OMC has scheduled an auction for 2.249 mnt of iron ore (0.901 mnt of lumps and 1.348 mnt of fines) today. The miner has increased base prices by INR 150/t m-o-m for the few fines and lumps lots. Heavy monsoon rainfall has curbed iron ore availability, restricting production and dispatches, which led to an increase in base prices.
Market update
Heavy rainfall during the first half of July significantly impacted iron ore production and dispatches in the region, leading to a noticeable ore shortage. A trader informed, “There is clear supply pressure in the market right now. Most miners are holding back material, and dispatches have slowed down due to weather conditions. The buyers are now eying the OMC auction to purchase material on a need basis.”
In the run-up to the latest OMC auction, a few miners kept their offers on hold, awaiting the outcome of the auction for future price direction. Market participants suggested that the hike in base prices for several lots may lead to higher premiums compared to last month, especially since aggressive bulk bookings were absent during the drier spell earlier.
Meanwhile, a steelmaker mentioned, “Only pocket trades are being witnessed, while most major buyers are focusing on auction participation to secure raw material.”
In parallel, pellet prices in the central-eastern region have seen a slight uptick, which is expected to lend additional support to OMC bids in the coming days.
A miner informed, “We are currently holding the iron ore offers and will revise the prices next week after the OMC auction results. For now, we are stocking inventory to dispatch materials from previous deals and are not accepting new orders.”
Although trading activity remained subdued this week, market participants expect a revival in buying momentum from next week. The final results of today’s OMC auction are likely to offer further clarity on the pricing trend ahead.
Factors affecting iron ore prices
Pellet offers climb w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil rose by INR 150/t ($2/t) w-o-w to INR 8,200/t ($94/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur rose by INR 350/t ($5/t) w-o-w to INR 9,750/t ($110/t) exw on 18 July.
Sponge iron prices range-bound w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela remained largely stable w-o-w at INR 24,800/t ($289/t) on 19 July. Meanwhile, steel billet (100*100 mm) offers in Rourkela decreased by INR 300/t ($5/t) w-o-w to INR 36,300/t ($426/t) today.
Rationale
- T1- Five (5) deals for Fe62% fines were recorded in the publishing window, and four (4) were considered for price computation. These were given 50% weightage for index calculation.
- T2 – BigMint received twenty (20) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Fifteen (15) were taken into consideration and given 50% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.
Outlook
According to BigMint’s analysis, the Odisha iron ore market is expected to gain clarity on future trends next week, and prices may rise as bids are expected to rise in the auction due to iron ore shortages.
Leave a Reply