- Bids drop by INR 100-350/t m-o-m in OMC auction
- Miners withdraw offers, revision expected next week
Odisha iron ore prices declined by around INR 200/t this week, following the conclusion of the Odisha Mining Corporation (OMC) auction. The correction came after bids in the auction fell sharply by nearly INR 350/t, setting the tone for broader market sentiment.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index fell by INR 200/t ($2/t) w-o-w to INR 5,300/tonne (t) ($60/t) ex-mines on 20 September 2025. BigMint recorded deals for around 525,000 t in Odisha, concluded by direct sales. Deals for Fe62% fines were concluded within INR 5,400-5,600/t ex-mines this week before the OMC auction.
In OMC’s 19 September auction for 3.098 mnt iron ore, of the 1.92 mnt of fines (Fe 51-65%) offered, 87% (1.674 mnt) of the lots were booked at INR 2,550-5,450/t, with bids falling INR 350/t m-o-m due to weak steel market sentiment and uncertainty over export duties and iron ore price adjustments. Similarly, 1.088 mnt of iron ore lumps (Fe 60-65%) were sold at INR 5,600-7,400/t, with a slight INR 100/t decrease m-o-m in weighted average bids, reflecting the same market weakness.
Earlier, the miner had increased base prices by INR 50/t and INR 50-150/t m-o-m for the fines and lumps lots, respectively.
Market highlights
Market participants noted that the fall in prices was largely driven by higher auction volumes and ongoing uncertainty over a potential export duty on lower-grade iron ore. A market participant stated, “Increased availability in the auction created pressure on prices, while rumours around possible export duty kept buyers cautious.”
Following the auction, most miners withdrew their offers from the market and are expected to revise their prices in the coming week. A miner informed, “Sellers are taking a wait-and-watch approach, as the auction bids suggest that buyers are unwilling to commit at current high levels.”
On the buyers’ side, steelmakers and sponge iron producers refrained from aggressive bidding, citing weak performance in downstream steel and semi-finished product markets. A buyer stated, “The sponge iron and other steel segments are not performing well, so current ore prices look unviable. We expect further corrections in the short term.”
Market players expect the market to stabilise only after clarity emerges on the government’s stance regarding lower-grade ore exports and once miners revise their offers in line with auction results.
Factors affecting iron ore prices
Pellets remain stable w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil remained stable w-o-w at INR 8,700/t ($99/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur remained stable w-o-w at INR 9,350/t ($106/t) exw on 12 September
Sponge iron prices rise w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela increased by INR 250/t ($3/t) w-o-w to INR 26,450/t ($300/t) on 20 September.
Billet prices hold firm w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela remained largely stable w-o-w at INR 36,300/t ($412/t) today.
Rationale
- T1- Six (6) deals for Fe62% fines were recorded in the publishing window, and five (5) were considered for price computation. These were given 50% weightage for index calculation.
- T2 – BigMint received fifteen (15) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Ten (10) were taken into consideration and given 50% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.
Outlook
BigMint’s analysis suggests that iron ore prices in Odisha are likely to remain volatile, with the upcoming week being critical in determining tradeable levels and shaping the overall buying strategy in the domestic market.
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