India: BigMint Odisha iron ore fines index remains stable w-o-w with ongoing monsoon

• Prices remain stable amid subdued monsoon demand
• Lower-grade supply disruptions and firm pellet demand provide support

BigMint’s Odisha iron ore fines (Fe 62%) index remained unchanged w-o-w at INR 5,000/tonne (t) ($52/t) ex-mines on 8 August 2026.

Market activity remained subdued amid the monsoon, with limited offers in market and procurement largely need-based. However, rainfall-related disruptions to mining and dispatches, provided some support to the market. Higher coal costs also kept sponge iron producers cautious on fresh purchases, limiting upside despite continued inquiries for Fe 60%+ fines.

Auctions, deals

No major deals were recorded for high-grade iron ore during the week via direct sales.

However, buyers showed active participation in the latest SAIL Bolani auctions, securing decent volumes of Fe 59.41% fines and Fe 62% CLO, while the JSW CLO auction also witnessed healthy buyer interest. Overall, Odisha-based miners sold around 123,450 t of iron ore through auctions during the week.

Rationale

• T1- Zero (0) deal for Fe 62% fines were recorded in the publishing window, and was given 0% weightage for index calculation.
• T2 – BigMint received twenty one (21) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Fifteen (15) were taken into consideration and given 100% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.

Market sentiment remains soft amid monsoon-related disruptions

A source said, “Monsoon conditions have slowed procurement activity, while mills are carrying sufficient inventories following the July OMC auction and pre-season stock build-up. The market is currently on the softer side, although rainfall has also disrupted production and dispatches.”

“Low-grade ore dispatches have been affected due to stricter checks by persistent rainfall, with mining and transportation operations facing disruptions. While inquiries remain active, actual procurement is relatively cautious due to the monsoon,” mentioned a Kharagpur-based buyer to BigMint.

Meanwhile, a miner highlighted, “We are receiving a good number of inquiries, but higher coal prices are putting pressure on margins. As a result, sponge producers remain cautious on procurement and are avoiding aggressive inventory build-up.”

Overall, sentiment remained soft-to-stable, as comfortable mill inventories and cautious sponge iron procurement offset the supply-side impact of monsoon-related disruptions. While rainfall has constrained mining and lower-grade ore dispatches, higher coal costs are limiting producers’ purchasing appetite, keeping the market from gaining significant momentum.

Meanwhile, India’s largest merchant iron ore mining company, NMDC, has reduced its list prices of iron ore CLO (calibrated lump ore) and fines on 8 August 2026, BigMint learnt from sources. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 5,750/tonne (t) ($60/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. Prices of all grades have decreased in the range of INR 100-200/t.

Factors supporting iron ore prices

• Pellet prices hold steady amid subdued fresh buying: Pellet prices remained unchanged across key Indian markets during the week ended 7 August 2026, following the gains recorded in the previous week. In Odisha’s Barbil, Fe 62.5% (6-20 mm) pellet prices held at INR 8,400/t ($88/t) LTW, while Durgapur prices also remained flat w-o-w at INR 9,350/t ($98/t) EXW on 7 August. The pause followed the earlier increase as buyers adopted a more cautious approach, keeping pellet prices stable despite firm raw material costs.
• Sponge iron ore prices rise further amid firmer sponge iron sentiment: According to BigMint’s assessment, C-DRI (FeM 80%) prices in Rourkela increased by INR 450/t ($4.7/t) w-o-w to INR 25,800/t ($271/t) exw Rourkela on 7 August 2026, supported by firmer pellet prices, tighter raw material availability and improved buying interest. Producers maintained higher offers as rising replacement costs strengthened their bargaining power, keeping market sentiment firm.
• Rebar prices remain stable amid cautious buying: Rebar (12-25 mm, IF Route, Fe 500, IS 1786) prices remained unchanged at INR 46,500/t ($487/t) exw Rourkela on 7 August 2026. Market sentiment remained stable, with subdued downstream demand and cautious procurement keeping prices rangebound, while firmer input costs provided some support to mill offers.

Outlook

BigMint anticipates Odisha iron ore prices to remain firm in the coming week, supported by continued pellet demand, limited availability of lower-grade ore and steady procurement by steelmakers. While subdued downstream steel demand may cap the upside in fines, iron ore prices are likely to remain supported by maintenance-related supply tightness and preference over lump ore during the monsoon.