- Pellet prices continue to decline in domestic market
- Few miners announce corrections in iron ore offers
Iron ore fines prices in Odisha came under pressure this week, tracking the continued decline in pellet prices across the central and eastern regions. The downtrend reflects subdued demand fundamentals in the downstream steel sector, coupled with cautious buying sentiment among market participants.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index remained largely stable w-o-w at INR 5,550/t ($59/t) ex-mines on Saturday, 2 May 2026. It recorded deals for around 450,000 t this week, concluded directly by steelmakers with private miners and traders.
At Odisha auctions conducted this week, JSW Steel booked 39,500 t of CLO (5-18 mm, Fe 61-63%) at base prices of INR 6,900-7,900/t. SAIL sold 20,000 t of dump fines (Fe 60.4%) from Bolani mines at INR 4,560/t. In AMNS auction, around 24,000 t iron ore was booked, including 4,000 t of CLO (Fe 62.5%, 5-18 mm) at INR 7,225/t (base) and 20,000 t of low-TI CLO (Fe 58.58%, 10-40 mm) at INR 4,675/t against a base of INR 4,125/t.
Market highlights
Trading activity in the region remained moderate, with miners managing to secure some bulk orders at revised lower price levels. However, overall liquidity in the market stayed tight. According to market participants, the slowdown in steel demand has weighed on procurement appetite, forcing buyers to negotiate aggressively.
A pellet producer highlighted the weak market dynamics, stating that “buyer counters are significantly below current offers, and inquiries have been limited. This mismatch between expectations has led to a drop in fines prices, while higher-priced offers have struggled to find takers in the spot market.”
Meanwhile, miners have responded by adjusting prices. One miner noted that fines prices were reduced by around INR 50-100/t during the week, while lump ore prices remained largely unchanged following the recent OMC auction. The stability in lump prices indicates relatively better demand support compared to fines.
Meanwhile, a steelmaker pointed out that trading activity has not completely stalled, as producers have begun pre-monsoon procurement. He added, “We are seeing some movement in the market as mills prepare inventories ahead of the rainy season.” The seasonal factors are providing limited support to demand.
Adding to the supply pressure, new miners have entered the Odisha market, improving overall material availability. This increased supply, combined with weak demand, has kept prices under downward pressure.
Market participants expect prices to remain largely stable in the near term, with any significant correction likely to emerge after the next OMC auction, which is anticipated to take place in mid-May. Until then, the market is expected to operate within a narrow range, influenced by cautious buying, adequate supply, and continued softness in pellet and steel markets.
Factors affecting iron ore prices
Pellet prices sharply fall: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil dropped by INR 300/t w-o-w to INR 8,500/t ($90/t) loaded to wagon on 1 May. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur fell by INR 50/t to INR 9,650/t ($102/t) exw.
Sponge iron prices drop w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela fell by INR 300/t ($3/t) w-o-w to INR 27,500/t ($290/t) on 2 May.
Billet prices stable w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela remained stable w-o-w at INR 41,200/t ($434/t) on 2 May.
Rationale
- T1- Four (4) deals for Fe 62% fines were recorded in the publishing window, and two (2) were considered for price computation. These were given 50% weightage for index calculation.
- T2 – BigMint received twenty (20) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. sixteen (16) 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 market inputs and BigMint analysis, iron ore prices will remain stable, with trading activity aligning with current levels due to continued pre-monsoon raw material restocking by steelmakers.
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