- Over 2 mnt of iron ore booked in OMC auction
- Sponge iron, semi-finished prices surge w-o-w
Odisha iron ore prices firm up this week, following the recent Odisha Mining Corporation (OMC) auction, where bids rose significantly amid sustained demand. Industry participants noted that the limited availability of material kept price tags on the higher side, with robust domestic and export demand supporting the bullish trend.
Prices saw an uptick of INR 100-300/tonne (t) w-o-w amid the tight availability of material, further supported by the rise in the downstream steel tags.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index rose by INR 150/t ($2/t) w-o-w to INR 5,350/tonne (t) ($62/t) ex-mines on 26 July 2025. This week, trading activity was somewhat subdued, with comparatively low transaction volumes recorded, due to the limited availability of ore. Approximately 250,000 t of iron ore were traded in the Odisha region this week.
Some high-grade fines deals were concluded at INR 5,050-5,600/t ($58-64/t) ex-mines, amid limited availability of material.
OMC conducted auctions for 2.249 mnt of iron ore (0.901 mnt of lumps and 1.348 mnt of fines) on 19 July. Around 1.304 mnt (97%) were booked at INR 2,550-5,350/t ex-mines, with a premium of INR 50-850/t. The entire lumps volume offered was booked at INR 5,350-7,650/t, with premiums of up to 27% on the base prices. Bids (weighted average) increased by INR 150/t m-o-m and INR 175/t for fines and lumps, respectively. Earlier, OMC had lifted base prices by INR 150/t m-o-m for some lots.
Market highlights
A key factor contributing to the firmness in prices is constrained supply, primarily due to reduced production and dispatch activities in the region amid the ongoing monsoon. A steelmaker informed BigMint, “Even after a decent response in the OMC auction, buying interest continues, as miners are offering only limited material.”
This sentiment was echoed across the market, with buyers still actively seeking material despite elevated prices.
The monsoon season has disrupted mining operations and slowed down dispatch, creating a temporary shortage in the spot market. A miner based in Odisha remarked, “We are only accepting orders for lower quantities at premium prices, as our production and rake movement have been impacted by heavy rains.”
Currently, only a few miners are actively offering material in the market, while many are yet to float their offers, waiting for a clearer market direction. This has added to the market uncertainty and supported the uptrend in pricing.
Market participants noted that iron ore prices are likely to remain firm and could even rise further if supply constraints persist. Greater clarity on pricing trends is expected in the coming days once more miners start releasing offers. Until then, the market remains tight, with demand continuing to outpace available supply.
Factors affecting iron ore prices
Pellet offers climb up w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil rose by INR 400/t ($5/t) w-o-w to INR 8,600/t ($100/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur rose by INR 50/t ($0.5/t) w-o-w to INR 9,800/t ($113/t) exw on 25 July.
Sponge iron prices rise sharply w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela rose sharply by INR 1,500/t ($18/t) w-o-w to INR 26,350/t ($305/t) on 26 July.
Billet sees w-o-w uptick: Meanwhile, steel billets (100*100 mm) offers in Rourkela increased by INR 1,100/t ($13/t) w-o-w to INR 37,400/t ($433/t) today.
Rationale
- T1- Ten (10) deals for Fe62% fines were recorded in the publishing window, and six (6) were considered for price computation. These were given 50% weightage for index calculation.
- T2 – BigMint received twenty-one (21) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Eighteen (18) 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 will remain firm in the near term, with the supportive demand from both domestic and export markets. The recent rise in sponge iron and semi-finished prices will also give a boost to the iron ore offers in Odisha.
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