- Weighted average bids rise by INR 170/t m-o-m
- 99% of offered quantity booked in auction
Odisha Mining Corporation (OMC) auctioned around 0.62 mnt of iron ore lumps (Fe 60-65%) on 19 August 2026, with bids received for 0.618 mnt, representing nearly 99% of the offered quantity. Winning bids ranged between INR 4,400-7,700/t, with an average premium of around INR 170/t over the notified base prices. The premium over base prices was recorded up to INR 1,750/t for few lots. However, on a weighted average basis, bids rose only INR 170/t m-o-m compared to July.
Notably, ahead of the August auction, OMC raised base prices m-o-m for the lumps auction. by INR 250/t. Also, the miner reduced offered quantity significantly to 0.62 mnt against 0.88 mnt in July and 1.14 mnt in June.
Auction highlights
Weighted average bids for Fe 62%, 5-18 mm lumps rose by INR 400/t m-o-m to INR 5,650/t in August, while Fe 62%, 10-40 mm bids surged by INR 200-250/t against last month.
Offering was lower than July due to the ongoing monsoon and delayed dispatch from sellers.
A market participant commented, “With iron ore supply remaining tight and limited scope for additional fresh volumes, the market was expected to move higher. While the upside was somewhat below expectations, the underlying supply-side tightness continues to support a positive price outlook, though steel demand remains measured.”
Market sentiments
Production and supply remain constrained: Iron ore availability in Odisha has remained relatively tight, with lower-grade material particularly affected by intensified regulatory checks. Dispatches from key miners have also softened in recent months, limiting fresh merchant-market availability and providing underlying support to prices.
Odisha lumps prices increase: Reflecting tighter material availability, BigMint’s Odisha iron ore lumps (Fe 63%, 5-18 mm) index averaged around INR 7,050/t ex-mines in August (till 14th Aug), rising INR 275/t ($3/t) m-o-m.
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