- Offered quantity drops by 0.7 mnt amid monsoon-affected operations
- Auction scheduled on 19 Aug, high-grade fines price unchanged
Odisha Mining Corporation (OMC) will auction 1.831 million tonnes (mnt) of iron ore on 19 August 2026, comprising 1.21 mnt of fines and 0.62 mnt of lumps. The miner has significantly reduced the offered quantity this month amid heavy monsoon conditions, which have hampered mining operations. This has led to a surge of INR 100-250/t in lump prices across grades. Meanwhile, for fines, base prices for mid- and low-grade material (Fe <62%) have been raised by INR 100/t, while high-grade fines prices remain unchanged.
Meanwhile, the miner reduced the offered quantity by around 0.7 mnt in August. Prior to this, in July, the material offered was reduced by 0.62 mnt following restrictions on lower-grade Fe 55-60% iron ore dispatches imposed by the Odisha DMG.
Recent pellet export deals from the east coast market may support prices in the auction. However, a market participant noted that the excessive supply of high-grade fines in the market could limit the potential for further price increases.
A market participant commented, “Heavy monsoon in Joda and nearby regions in Odisha has reduced overall supply, while slow dispatches have created some concerns over availability.”
Odisha iron ore dispatches hit a four-month low of 13.3 mnt in June. Offers for lower-grade ore (Fe 57% and below) were limited in the merchant market over the last month due to intensified checks.
Dispatches from merchant miners, including GVPR, SN Mohanty and OMC, have fallen m-o-m. Notably, OMC’s iron ore dispatches fell from 3.49 mnt in May to 3.36 mnt in June.
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