India: NMDC raises iron ore lump prices by up to INR 250/t ($3), keeps fines prices unchanged

• Odisha iron ore prices rise on tight availability, falling dispatches
• Higher output outpaces sales, supporting inventory availability

India’s largest merchant iron ore mining company, NMDC, has lifted prices of iron ore CLO (calibrated lump ore) by INR 250/t and fines unchanged on 9 September 2026, BigMint learnt from sources. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 6,000/tonne (t) ($63/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.

Why has NMDC revised prices for September deliveries?

• Odisha iron ore fines prices rise m-o-m on tighter availability: BigMint’s Odisha iron ore fines (Fe 62%) index rose by INR 90/t ($1/t) m-o-m in August. The increase reflects firmer domestic market conditions, with limited availability amid monsoon-related mining disruptions and steady auction bids supporting prices. Sentiment remained firm to cautiously positive, as stronger steel prices and elevated raw material costs improved buyers’ willingness to absorb higher iron ore prices. Odisha iron ore dispatches have hit ten-month low to 12.3 mnt in Jul’26 amidst monsoons.
• Weighted average bids remain stable m-o-m in OMC’s iron ore fines auction: Odisha Mining Corporation (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. Around 96% of the material offered, i.e. 1.159 mnt of fines, was booked out of the 1.121 mnt offered, with average bids stable m-o-m. The miner significantly reduced its auction volume this month as heavy monsoon conditions disrupted mining operations, tightening availability and supporting lump ore prices.
• Raipur pellet prices strengthen m-o-m on firm raw material costs: Raipur pellet (Fe 63%) prices rose by INR 760/t ($8/t) m-o-m in August, reflecting firmer raw material costs and tighter availability. Market sentiment turned firm to bullish, supported by higher iron ore and coal prices, improving steel realisations and stronger pellet demand from sponge iron and steel producers. Limited spot availability further strengthened sellers’ pricing power, allowing pellet prices to move higher during the month.
• India steel index rises sharply on stronger demand, raw material prices: BigMint’s India steel composite index increased by 2.8% w-o-w, as assessed on 4 September, rising for the seventh straight week since late July as domestic steel prices continue to remain on an upward trajectory. This is because of a broad tightening across the steel value chain during August. Iron ore, pellets and coking coal prices have strengthened, lifting replacement costs for steelmakers. Availability of BF-route rebar has tightened, providing producers and distributors with greater pricing strength. Market sources indicated that several mills have stopped accepting fresh project bookings, while some producers have not announced project prices, further limiting available material in the project segment. Major integrated steelmakers increased flat steel list prices by INR 750-1,500/t for September deliveries as improving demand expectations from the construction, infrastructure and automotive sectors coincided with rising input costs.
• Global iron ore prices edge down m-o-m: Iron ore fines (Fe 61%, Australia origin) prices averaged $95.7/dmt CFR China in August, down $2.5/t m-o-m amid cautious buying and subdued procurement interest. Sentiment remained cautious to slightly bearish, although the modest correction indicated limited pressure on sellers to lower offers. However, towards the end of August, prices recovered to $99.7/dmt CFR China, their highest level in more than a month, supported by improved trading of medium-grade blend fines, firmer ferrous sentiment, and expectations of restocking demand, although overall market activity remained relatively thin.

Meanwhile, miners’ cumulative iron ore production rose 26% y-o-y to 23.23 mnt during April-August 2026, from 18.45 mnt in the corresponding period last year, according to the company’s latest exchange filing. In contrast, cumulative sales increased only 2% y-o-y to 18.72 mnt from 18.37 mnt, showing a significant divergence between output and sales during the period. 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.