India: NMDC lifts iron ore prices by upto INR 450/t ($5/t) for Aug’25 amid supportive market sentiments

• Bids rise by upto INR 175/t ($2/t) m-o-m in OMC’s July auction
• Pellet prices rise m-o-m
• NMDC’s Chhattisgarh auction fetches premium bids

India’s largest merchant iron ore mining company, NMDC, increased 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 6,850/tonne (t) ($78/t) and of iron ore fines (-10 mm, Fe 64%) at INR 5,250/t ($60/t), an increase of INR 450/t ($5/t) and 400/t ($4.5/t), respectively.

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

Factors behind price hike

• Bids rise by upto INR 175/t ($2/t) in OMC’s auction: In OMC’s auction for 1.348 million tonnes (mnt) of iron ore fines (Fe 51-65%) on 19 July 2025, 1.304 mnt (97%) were booked at INR 2,550-5,350/t ($29-62/t) ex-mines, with premiums of INR 50-850/t ($1-10/t). Bids (weighted average) increased by INR 150/t ($2/t) m-o-m. In the lumps auction, the bids went up by a weighted average of INR 175/t m-o-m. Earlier, the miner had lifted base prices by INR 150/t ($2/t) m-o-m for some lots. Limited iron ore availability amid monsoon disruptions and rising pellet prices supported stronger bidding in the fines auctions.
• NMDC’s Chhattisgarh iron ore auction receives premium: NMDC Chhattisgarh auctioned 130,400 t iron ore from Bacheli on 25 July 2025. The entire 34,400 t DRCLO (Fe 67%) offered was booked at a 10.5% premium against base price of INR 6,450/t ($74/t), while 10,000 t Baila-sized lumps (10-20 mm, Fe 65.5%) were booked at INR 6,500/t ($74/t) fetching INR 600/t ($7/t) premium. Prices were on FOR basis, inclusive of royalty, DMF, and NMET.
• Global iron ore prices up by $5/t m-o-m: China’s spot iron ore prices firmed up m-o-m, with the benchmark Fe 62% fines rising by $5/t to $99/t CFR China in Jul’25 amid continued market optimism. However, physical trade lagged behind the more active paper market, compressing trader margins. Portside iron ore prices also saw notable gains, accompanied by increases in coking coal and coke tags.
• Domestic pellet index rises over INR 200/t ($2/t) m-o-m: BigMint’s monthly average domestic pellet index, PELLEX, increased by around INR 240/t ($3/t) m-o-m in July to INR 9,450/t ($108/t) DAP Raipur. Pellet prices rose sharply throughout the month, buoyed by increased offers and strength in sponge PDRI and semi-finished steel prices. Despite this, trading remained muted, with limited buyer interest in new bookings. Market sources noted that while inquiries were made, most suppliers had already wrapped up their sales and were prioritizing the dispatch of earlier concluded orders.