- Around 70% fines receive bids
- Sharp drop in pellet prices keep bids low
In OMC’s iron ore fines auction for 1.975 mnt (Fe 51-62%) on 20 May’26, 1.374 mnt (70%) was booked at INR 3,550-5,150/t. Only a couple of lots received premiums of INR 50-250/t over base prices, while the remaining lots were booked at the base prices. Meanwhile, weighted average bids dropped by INR 700/t m-o-m. However, OMC had cut base prices by INR 200-900/t m-o-m for the fines auction.
Notably, Fe 60% fines average bids were recorded at INR 4,470/t while Fe 62-65% bids were at INR 4,860/t in the auction. It witnessed a drop in the range of INR 200-1,000/t in bids against last month.
Market overview:
Odisha iron ore prices decline INR 200/t m-om: BigMint’s Odisha iron ore fines index (Fe 62%) witnessed a correction of INR 200/t amid subdued buying activity from steel mills and traders. Buyers remained cautious amid weak finished steel demand and adequate inventory at plants.
Pellet prices under pressure: BigMint’s pellet (6-20 mm, Fe 62.5%) assessment FOR Barbil fell sharply by INR 600/t to INR 8,400/t m-o-m in May against INR 9,000/t in April. Current demand is very weak, with sellers actively looking to divert volumes to neighbouring markets or for export opportunities amid better realisations.
Sponge iron prices fall INR 1,500/t m-o-m: Domestic sponge iron (CDRI) prices in Rourkela declined by around INR 1,450/t in May against April on sluggish demand from secondary steelmakers and continued pressure on billet prices. Weak finished steel realisations and cautious raw material procurement weighed on market sentiment, resulting in restricted participation in iron ore auctions.
Outlook
Iron ore prices in Odisha are expected to correct, with reductions by the private miners in the second half of May. However, trading activity may remain intact due to the uncertainty concerning semi-finished steel prices.
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