- Miners keep offers steady on largely stable sponge iron, semis prices
- Nearly 80% of EC limits exhausted, miners restrict fresh bookings
Iron ore prices in the Odisha region remained largely stable this week, with trading activity limited to need-based requirements, as miners and buyers adopted a cautious stance amid expected stability in prices.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index remained unchanged w-o-w at INR 6,000/t ($65/t) ex-mines on Saturday (31 January 2026). BigMint recorded deals for around 280,000 t this week, concluded directly by steelmakers.
At Odisha-based miners’ auctions on 28-29 Jan’26, 144,000-t iron ore were booked. From AM/NS Sagasahi, 52,000-t lumps (5-18mm, Fe 58.5-62.5%) were sold at INR 6,200-7,225/t, 20,000-t low TI CLO (10-40 mm, Fe 58.5%) at INR 4,000/t, 20,000-t fines (Fe 53.5-56.5%) at INR 3,000-4,050/t, and 32,000-t residual fines (Fe 53%) at base prices of INR 2,375/t. In SAIL Bolani’s auction, 20,000-t dump fines (Fe 61.34%) were booked at INR 5,325/t against a base price of INR 5,225/t.
Market highlights
Market participants stated that miners kept their offers unchanged from last week and were accepting only selective bookings. According to sources, dispatches against earlier confirmed orders are still pending, which has restricted fresh availability in the spot market. A trader noted, “Most sellers are focused on clearing previous bookings. Fresh orders are being entertained only on a limited basis.”
Meanwhile, some private miners conducted auctions during the week, which saw moderate participation from buyers. However, bidding interest remained selective, as buyers largely procured material to replenish immediate raw material requirements rather than building inventories. A sponge iron producer said, “Buyers are booking small volumes strictly on need basis. There is no aggressive stocking at current levels.”
Market sentiment remained steady as downstream sponge iron and semi-finished steel prices traded in a narrow range. Participants said that stable steel prices have helped maintain firmness in ore offers, despite weak buying momentum. Another steelmaker added, “The market is balanced right now, there is no urgency on either side.”
On the supply side, miners highlighted operational limitations, with several producers nearing the end of their Environmental Clearance (EC) validity. Sources indicated that nearly 80% of EC limits have already been utilised, prompting miners to restrict fresh bookings. A miner mentioned, “With ECs nearing expiration and dispatch backlogs, miners are consciously limiting new sales.”
Factors affecting iron ore prices
Pellet prices show mixed trends w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil decreased by INR 250/t ($3/t) w-o-w to INR 9,000/t ($98/t) loaded to wagon on 30 January. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur rose by INR 50/t ($0.5/t) to INR 10,450/t ($114/t) exw.
Sponge iron prices fall marginally w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela edge down by INR 150/t ($2/t) w-o-w to INR 26,200/t ($287/t) on 31 January.
Billet prices drop w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela decreased by INR 350/t ($4/t) w-o-w to INR 40,100/t ($437/t) on 31 January.
Rationale
- T1- Four (4) deals for Fe 62% fines were recorded in the publishing window, and two (2) were considered for price computation. These were given 50% weightage for index calculation.
- T2 – BigMint received nineteen (19) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Eighteen (18) were taken into consideration and given 50% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.
Outlook
Prices are expected to remain largely stable in the coming week, with market participants anticipating continued need-based trading activity. Any significant price movement is unlikely unless there is a notable shift in pellet or downstream steel prices.
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