- Trade stays muted, most mills secure material from OMC auction
- Market silent due to Diwali, falling prices of downstream products
Odisha iron ore prices remained firm this week following the recent Odisha Mining Corporation (OMC) auction, even as trading activity in the region stayed muted. Market participants noted that most steelmakers had already procured their required quantities during the OMC auction last week, leading to subdued fresh demand in the open market.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,300/tonne (t) ($60/t) ex-mines on 25 October 2025. BigMint recorded around 20,000 t of iron ore deals this week, concluded directly by the steelmakers.
However, prices of sponge iron, semi-finished steel, and other downstream steel products declined significantly this week, which kept buyers slightly cautious following the OMC auction.
As per sources, the market was relatively inactive due to the Diwali festival, which kept trade volumes lower.
Market highlights
A miner stated, “We have kept our offers stable this week after the OMC auction, but inquiries have been quite limited. Most buyers are currently focused on dispatching previously booked material rather than entering new deals.”
Despite limited spot transactions, prices have held steady due to the restricted availability of material in the open market. Another miner stated, “Supplies from smaller private miners are limited at present, which is keeping the overall market sentiment firm. Even though buyers are cautious, the shortage of ready stocks is preventing any major price correction.”
On the buyers’ side, several steelmakers highlighted that the cost pressure remains a concern, as iron ore prices are relatively high compared to weakening sponge iron and semi-finished steel prices. A sponge iron producer stated, “Iron ore prices remain elevated, but the finished steel market is under pressure. This mismatch is squeezing margins and impacting procurement decisions.”
Traders also echoed similar sentiments, indicating that while the market is quiet at the moment, prices are unlikely to see a major fall in the near term. “We expect the market to remain firm in the coming weeks. Once the steel market stabilizes, trade volumes may improve,” said a trader from Odisha.
Factors affecting iron ore prices
Pellet prices stable w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil were stable w-o-w at INR 8,500/t ($95/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur remained stable w-o-w at INR 9,250/t ($104/t) exw on 17 October.
Sponge iron prices fall w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela decreased by INR 300/t ($4.5/t) w-o-w to INR 24,000/t ($273/t) on 25 October.
Billet prices drop w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela dropped by INR 300/t ($3.5/t) w-o-w to INR 34,000/t ($386/t) today.
Rationale
- T1- No deals for Fe 62% fines were recorded in the publishing window and not considered for price computation. These were given 0% 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. Twelve (12) were taken into consideration and given 100% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.
Outlook
BigMint’s analysis indicates that Odisha’s iron ore market is expected to maintain a steady trend in the short term, with limited trades supported by tight supply and controlled offers from miners.
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