- Around 3.5 mnt iron ore booked in OMC auction
- Active high-grade ore demand keeps price firm in eastern India
Iron ore prices in Odisha remained supported this week, as assessed on 24 January 2026, backed by the recently concluded OMC auction and a noticeable hike in OMC bid levels compared to the previous month. The positive momentum in downstream sponge iron and semi-finished steel prices has provided further support to raw material prices.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index increased by INR 100/t ($1/t) w-o-w to INR 6,000/t ($65/t) ex-mines on Saturday. BigMint recorded deals for around 850,000 t this week, concluded directly by steelmakers. The major trades were concluded in the iron ore fines segment with a few bulk orders recorded.
In OMC’s iron ore fines auction for 2.24 mnt (Fe 51-62%) on 19 January around 2.03 mnt (91%) were booked at INR 2,450-6,200/t. The lots received premiums of INR 550-1,150/t over base prices, with INR 750/t being the average premium. Bids (weighted average) rose by INR 425/t m-o-m. Positive steel market sentiment, amid expectations of a pick-up in demand in Q4FY26, led to the robust auction response.
In OMC’s auction for 1.414 mnt of iron ore lumps (Fe 60-65%) on 19 January, the entire material was booked at INR 5,500-7,700/t, with premiums of INR 100-1,950/t. Weighted average bids remained largely stable m-o-m. Earlier, OMC had raised the base prices of lumps by INR 800/t. A hike of INR 3,000/t m-o-m in sponge CDRI prices, along with higher steel prices, kept lumps bids firm.
The miner has increased the base prices of lumps by around INR 800/t ($9/t), while those of fines rose by INR 150-350/t ($2-4/t) m-o-m. The recent increase in pellet, sponge iron and steel prices prompted miners to lift iron ore offers.
Market highlights
Market participants said that buyers actively secured bulk volumes at OMC’s auction as per their operational requirements, while some buyers have started approaching merchant miners at revised offer levels. A trader said, “Most large buyers have already covered a significant portion of their requirement through the OMC auction, but a few are still testing the merchant market for spot volumes.”
Miners confirmed that offers were revised slightly upward a couple of days ago, and fresh offers are currently being quoted in the market. A miner added, “We adjusted our prices in line with the OMC auction trend and the improvement in sponge iron prices. New offers are now being extended selectively.”
However, overall trading activity remained relatively slow amid the lack of clear price direction. Several participants highlighted that buyers are cautious and are waiting for clearer market sentiment. A market source explained, “There is hesitation in the market as steelmakers are looking for stability in downstream steel prices before committing to further raw material procurement.”
Another participant pointed out that supply-side dynamics are also influencing pricing. He said, “Most miners have already exhausted nearly 80% of their EC limits, which is making them selective with order acceptance and pushing prices slightly higher.”
Meanwhile, a buyer mentioned that major steelmakers have largely fulfilled their near-term requirements via the OMC auction and are now engaging with merchant miners only for immediate or urgent needs.
Factors affecting iron ore prices
Pellet prices up w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil increased by INR 400/t ($4/t) w-o-w at INR 9,250/t ($101/t) loaded to wagon on 23 January. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur rose by INR 500/t ($5/t) to INR 10,400/t ($113/t) exw.
Sponge iron prices rise w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela increased by INR 350/t ($4t) w-o-w to INR 26,350/t ($287/t) on 24 January.
Billet prices stable w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela remained stable w-o-w at INR 40,450/t ($441/t) on 24 January.
Rationale
- T1- Five (5) 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 twenty-three (23) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Twenty one (12) were taken into consideration and given 50% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.
Outlook
Iron ore prices in Odisha are expected to remain stable at current levels, with limited trades likely to conclude at revised offers, supported by controlled supply and cautious but steady demand.
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