- Global iron ore prices drop as China lowers imports by 4% m-o-m
- Indian steel, raw material prices weaken m-o-m in Jul’26 as monsoon slowdown continues
India’s largest merchant iron ore mining company, NMDC, has reduced its list prices of iron ore CLO (calibrated lump ore) and fines on 8 August 2026, BigMint learnt from sources. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 5,750/tonne (t) ($60/t) and of iron ore fines (-10 mm, Fe 64%) at INR 4,500/t ($47/t). Prices are on FOR basis from the miner’s Bacheli complex and exclude royalty, DMF, and NMEDT. Prices of all grades have decreased in the range of INR 100-200/t.
Factors behind drop in prices:
- Global iron ore prices plunge: Iron ore fines (Fe 61%, Australia origin) prices dropped largely by $2.5/t m-o-m to $98.5/dmt CFR China in July, highlighting the softness in underlying market fundamentals. Moreover, the market continued its downward rally in early August, standing currently at $95/t. Prices kept dragging down amid slowed production momentum and softer demand from mills. Moreover, growing inventories at steel mills as well as portside inventories exerted additional downward pressure on prices. Additionally, China’s iron ore imports declined to 108.09 million tonnes (mnt) in July 2026, down nearly 4% m-o-m from 112.69 mnt in June, according to data released by the General Administration of Customs of China (GACC).
- Bids remain muted in OMC’s July iron ore fines auction: BigMint’s Odisha iron ore fines index (Fe 62%) fell by INR 100/t m-o-m to INR 4,900/t in July as the market remained soft. Due to the ongoing dispatch and royalty issues for lower grades, miners-maintained offer prices for Fe 60% and above, with selective discounts provided for bulk deals. Meanwhile, OMC’s 1.66 mnt auction drew bids for 92% of the offered volume, with average premiums holding steady at around INR 100/t over base prices.
- Indian steel prices fall m-o-m in Jul’26: Indian steel, raw material prices weaken m-o-m in Jul’26 – HRC prices declined just 1% m-o-m, as trade channel demand remained subdued as buyers limited procurement to immediate requirements amid liquidity constraints and comfortable inventories. However, the safeguard duty, low imports, the anti-dumping investigation into HRC imports, and steady demand from OEMs prevented a sharper correction. BF-route rebar, ex-Mumbai, recorded the steepest decline among finished steel products, falling 7% m-o-m. Primary producers repeatedly reduced prices during the first three weeks as inventories accumulated and project bookings slowed.
NMDC produced 19.16 mnt of iron ore during April-July FY’27, up 27% from 15.09 mnt in the corresponding period of the previous fiscal. Cumulative sales stood at 15.15 mnt, marginally higher than 14.98 mnt a year earlier. The company enhanced production capacity in Chhattisgarh substantially: Deposit 14 was increased to 18.5 mnt/year from 10.5 mnt/year and Deposit 5 to 12 mnt/year from 10 mnt/year. This ultimately resulted in higher production from Chhattisgarh. NMDC has set a production guidance of 60 mnt for FY’27 compared to output of 53 mnt in FY’26. The miner has outlined a detailed roadmap for this, including commencing mining operations from Deposits 4 and 13 in Bailadila.
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