- Limited higher-grade ore availability keeps prices unchanged
- Firm sponge iron, pellet, billet prices support iron ore prices
Iron ore prices in Odisha strengthened this week, as miners concluded a handful of deals with both domestic steelmakers and traders. Market sentiment remained firm throughout the week, supported by steady buying interest and a limited supply of higher-grade material.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index rose by INR 100/t ($1/t) w-o-w to INR 5,700/t ($63/t) ex-mines on 6 December 2025. BigMint recorded deals for around 350,000 t of iron ore this week, concluded directly by steelmakers.
Meanwhile, around 100,000 t of iron ore were sold via auction this week by the major miners AMNS and JSW, as per data reported by BigMint.
Market highlights
According to market participants, demand for iron ore was strong, which led miners to maintain offers at elevated levels. Several bulk deals were concluded early in the week, signalling healthy procurement activity across major steelmaking clusters.
A prominent miner noted, “We are witnessing active inquiries from buyers across grades. Most of our available stock has already been sold out, and with the current market momentum, we are keeping our offers on the higher side.” The shortage of high-grade ore has particularly contributed to the firmness in offers, with producers prioritising committed volumes and holding back discounts.
Meanwhile, the Odisha iron ore auctions scheduled this week also received an active response. Buyers aggressively participated in the auctions to secure supply amid expectations of continued tightness in the spot market. A trader stated, “Overall, the market was firm throughout the week. With the supply of high-grade ore already tight, pricing is likely to stay elevated in the near term.”
Domestic steelmakers, although cautious about rising input costs, continued to procure sufficient volumes to sustain operations. Some steel producers indicated that the stability in sponge iron and billet prices supported the buying interest in raw materials.
Factors affecting iron ore prices
Pellet prices 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 ($98/t) loaded to wagon on 5 December. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur fell by INR 50/t ($0.5/t) to INR 9,750/t ($109/t) exw.
Sponge iron prices stable: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela remained largely stable w-o-w at INR 24,200/t ($273/t) on 6 December.
Billet prices surge w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela climbed up by INR 1,000/t ($1/t) w-o-w to INR 36,300/t ($398/t) today.
Rationale
- T1- Four (4) deals for Fe 62% fines were recorded in the publishing window, and three (3) were considered for price computation. These were given 50% weightage for index calculation.
- T2 – BigMint received thirteen (13) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Twelve (12) were taken into consideration and given 50% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.
Outlook
As per BigMint’s analysis, Odisha iron ore prices are likely to continue rising in the coming days. Strong procurement from both domestic and export buyers, coupled with the ongoing shortage of high Fe content material, is likely to keep prices firm in the short term.
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