- OMC raises August base prices by INR 100-250/t
- Auction bids show limited change m-o-m
BigMint’s Odisha iron ore fines (Fe 62%) index remained unchanged w-o-w at around INR 5,000/t ($52/t) ex-mines as of 22 August 2026. The index held steady despite higher base prices announced by Odisha Mining Corporation (OMC) for its August auction, as weighted average bids remained broadly stable m-o-m.
The stability reflects a balance between higher producer price expectations and cautious downstream procurement. The August OMC auction was conducted on 19 August, providing fresh price cues to the Odisha market.
OMC auction offers limited price movement
OMC auctioned 1.83 million tonnes (mnt) of iron ore on 19 August, comprising 1.21 mnt of fines and 0.62 mnt of lumps. The miner reduced the quantity offered by around 0.7 mnt m-o-m as heavy monsoon conditions disrupted mining operations and tightened availability.
The reduction followed a 0.62 mnt cut in July, when dispatch restrictions on lower-grade Fe 55-60% ore imposed by the Odisha Directorate of Mines and Geology (DMG) had already constrained auction availability.
Of the fines offered in August, around 1.16 mnt, or 96%, was booked against 1.21 mnt offered. Despite the lower availability, average fines bids remained broadly stable m-o-m.
OMC raised base prices for mid- and low-grade fines with Fe below 62% by INR 100/t ($1/t), while high-grade fines prices were unchanged. Lump ore prices increased by INR 100-250/t ($1-3/t) across grades, reflecting tighter availability amid monsoon-related mining disruptions.
Downstream demand remains a constraint
Odisha’s iron ore market continues to face pressure from subdued downstream steel demand. Earlier in August, buyers were largely procuring on a need basis, while mills were carrying comfortable inventories following the July OMC auction and pre-monsoon stock build-up.
Rainfall-related disruptions have tightened availability and affected ore movement in parts of Odisha. However, these supply constraints have so far provided only limited upside because weak semi-finished and finished steel prices continue to restrict aggressive procurement.
Higher coal costs have also squeezed sponge iron margins, reducing mills’ willingness to build raw material inventories. At the same time, Rourkela C-DRI prices had increased earlier in August, indicating some improvement in procurement interest, although overall downstream sentiment remained cautious.
Factors supporting iron ore prices
- Tighter feedstock supply supports pellet offers: Odisha’s Barbil Fe 62.5% (6-20 mm) pellet prices rose by INR 100/t ($1/t) w-o-w to INR 8,500/t ($89/t) LTW, while Durgapur prices increased by the same amount to INR 9,450/t ($99/t) exw on 21 August. The gains were supported by tighter iron ore availability following monsoon-related disruptions and reduced OMC auction volumes.
- Rourkela C-DRI prices rise on improved procurement: Rourkela C-DRI (FeM 80%) prices increased sharply by INR 1,600/t ($17/t) w-o-w to INR 27,800/t ($290/t) exw on 22 August, supported by improved buying interest and higher procurement activity among sponge iron consumers.
- Rourkela rebar prices rise on improved buying interest: Rourkela rebar (12-25 mm, IF Route, Fe 500, IS 1786) prices rose by INR 1,500/t ($2/t) w-o-w to INR 48,000/t ($502/t) exw on 22 August 2026. The increase was supported by improved buying interest and higher procurement activity in the regional finished steel market.
Outlook
Odisha iron ore fines prices are expected to remain largely stable in the coming weeks, with OMC’s August auction outcome providing an important reference for spot-market negotiations. Any sustained improvement in sponge iron and finished steel demand could strengthen buying interest, while continued weak downstream margins may limit the ability of miners to push prices higher.
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