India: Iron ore concentrate prices stable; market waiting for future price direction

• Diesel scarcity impacts mining dispatches
• OMC auction bids decline sharply m-o-m

Iron ore concentrate prices in Jabalpur remained largely stable during the assessment period, while overall trading activity continued to stay muted amid subdued market sentiment. According to BigMint’s latest bi-weekly assessment, Fe 62% concentrate prices were assessed at INR 5,250/t ($54/t) ex-works, unchanged from 16 May, while Fe 63% concentrate prices held steady at around INR 5,500-5,600/t ($58-59/t).

The market continued to face downward pressure due to weak trends across the finished steel and pellet segments. Declining pellet prices, coupled with sluggish demand in the downstream steel sector, weighed on buying interest for iron ore concentrate. Market participants noted that several sellers remained inactive during the week, as most of their material for the month had already been committed. Fresh offers are expected to emerge only after the completion of pending dispatches, likely at revised price levels based on prevailing market conditions.

Industry participants were closely tracking the outcome of Odisha Mining Corporation’s (OMC) latest iron ore auction, considering it a key indicator for near-term market direction. Ahead of the auction scheduled on 20 May 2026, OMC reduced the base prices of iron ore fines and lumps across multiple grades. According to market sources, base prices for fines were lowered by around INR 200-900/t, while lump ore prices were cut by nearly INR 150-1,100/t compared with the previous auction cycle. The miner offered approximately 1.975 million tonnes (mnt) of fines and 1.3 mnt of lumps in the auction.

A Jabalpur-based seller informed BigMint that “the market was awaiting clearer direction following the OMC auction results.” The participant also highlighted operational challenges arising from the continued diesel and petrol shortage in mining regions, which has impacted transportation and logistics activities due to restricted fuel supply at local fuel stations.

Meanwhile, a trader based in Jabalpur stated “Concentrate prices had not witnessed any significant movement so far, but the OMC auction outcome is expected to provide a clearer indication of future price trends.” According to the trader, prices are likely to remain stable or witness further downside depending on the auction response.

Rationale

• Zero (0) trade was recorded in this publishing window and is not taken into consideration, receiving a 0% weightage.
• Twelve (12) offers and indicative prices were heard, and ten (10) were taken into consideration as T2 trades, receiving 100% weightage.

Factors weighing on prices

• Weak response in OMC’s fines auction: In OMC’s iron ore fines auction conducted on 20 May for 1.975 mnt (Fe 51-62%), around 1.374 mnt, or nearly 70% of the offered quantity, was booked at INR 3,550-5,150/t. Only a limited number of lots received premiums of INR 50-250/t over the base prices, while the majority were concluded at the base level itself. Weighted average bids declined by nearly INR 700/t m-o-m, reflecting subdued market appetite. Average bids for Fe 60% fines stood at around INR 4,470/t, while Fe 62-65% fines were booked at approximately INR 4,860/t, marking a decline of INR 200-1,000/t compared with the previous month’s auction.
• PELLEX declines amid sluggish pellet demand: PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, declined by INR 100/t to INR 9,800/t ($101/t) DAP on 19 May compared with 15 May. Meanwhile, prices fell by INR 650/t ($7/t) m-o-m from INR 10,600/t ($110/t) in April. The correction was driven by subdued buying interest, softer counter-bids from customers, and sustained pressure from the downstream steel sector. Pellet producers and traders continued to explore opportunities in neighbouring domestic markets and export channels in pursuit of relatively better realisations.
• Odisha iron ore prices remain under pressure: BigMint’s Odisha iron ore fines (Fe 62%) index remained unchanged w-o-w at INR 5,500/t ($58/t) ex-mines on 16 May. Despite price stability, overall market sentiment in Odisha continued to remain weak due to sluggish demand from steelmakers and pellet manufacturers. Buyers largely adopted a cautious procurement strategy amid weak finished steel demand and compressed margins, limiting the scope for any immediate recovery in raw material prices.

Outlook

Iron ore concentrate prices in the Jabalpur region are expected to under pressure in the near term. Softer bids observed in OMC’s latest auction, coupled with continued weakness in the downstream steel and pellet sectors, indicate limited support for price recovery.