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

• Miners hike INR 200-300/t in fresh lumps offers
• Pellet prices rises 200/t w-o-w on the eastern front

BigMint’s Odisha iron ore fines (Fe 62%) index increased by INR 50/tonne (t) w-o-w at INR 5,000/t ($52/t) ex-mines on 1 August 2026.

Iron ore prices in Odisha remained firm this week as healthy buying interest and constrained material availability supported the market despite the ongoing monsoon. Market participants reported stronger offtake from several miners, while trading activity remained particularly active for Fe 60%+ iron ore fines. In contrast, lower-grade iron ore witnessed slower offers and dispatches following restrictions imposed by the DMG Odisha.

Auctions, deals

BigMint recorded deals for around 420,000 t of iron ore outside of auctions, concluded by steelmakers via traders and miners.

Buyers actively participated in the latest SAIL Bolani and Barsua auctions, securing decent volumes of Fe 60%+ fines and Sialo material at competitive prices. According to market participants, the auctions witnessed healthy participation, reflecting sustained demand from steelmakers and traders seeking prompt supplies.

Odisha-based miners sold around 115,000 t of iron ore this week via auctions.

Rationale

• T1- Three (3) deals for Fe 62% fines were recorded in the publishing window, and all were considered for price computation. This was given 50% weightage for index calculation.
• T2 – BigMint received seventeen (17) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Fourteen (14) were taken into consideration and given 50% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.

Market highlights

On the pricing front, a couple of Odisha-based miners increased their lump ore offers by around INR 200/t during the week. Fines offers also moved up, albeit marginally, by around INR 50-100/t. Market sources indicated that most transactions were concluded near the revised offer levels, highlighting buyers’ willingness to procure material despite the higher prices.

A miner said, “Material availability continues to be a concern due to persistent monsoon conditions, which have affected mining and transportation activities. Supply remains tight because of the rains, and we are maintaining firm prices as buyer demand continues to be healthy.”

A steelmaker noted that recent gains in semi-finished steel prices have improved market liquidity, encouraging fresh procurement of iron ore. “The improvement in steel prices has supported buying sentiment, and iron ore transactions have picked up accordingly,” the participant said. Meanwhile, another steelmaker mentioned that bulk procurement requirements were largely met through recent Odisha Mining Corporation (OMC) auctions.

Traders added that most deals are currently being concluded on a need-based basis. While production at a few mines was temporarily affected by heavy rainfall, dispatches have gradually resumed as miners continue to offer previously stacked material. They expect additional transactions to conclude next week as more auction events are scheduled.

In the eastern region, supportive pellet prices this week prompted buyers to secure some bulk fines deals. The increasing prices of semi-finished and downstream steel contributed to improved market liquidity.

Factors affecting iron ore prices

• Lloyds raise iron ore offers by INR 250/t ($2.5/t) in Chandrapur, Maharashtra – Lloyds Metals and Energy has increased its iron ore fines, lumps and pellet offers in Chandrapur, Maharashtra, effective 31 July, supported by improving domestic market fundamentals and tightening raw material availability during the monsoon. Iron ore fines (Fe 63%) offers increased by INR 250/t to INR 6,550/t FOR Balharshah, while lump offers were revised to INR 9,750/t increased by INR 250/t and pellet offers to INR 10,500/t ex-works. The revision follows the company’s previous price cut announced on 22 May.
• Pellet prices strengthen amid active trading: Pellet prices moved higher across key Indian markets during the week ended 31 July 2026, supported by healthy buying interest. In Odisha’s Barbil, Fe 62.5% (6-20 mm) pellet prices increased by INR 300/t ($3/t) w-o-w to INR 8,400/t ($88/t) loaded to wagon (LTW). Meanwhile, Durgapur witnessed a INR 200/t ($2/t) increase, with Fe 62.5% (6-20 mm) pellets assessed at INR 9,350/t ($98/t) ex-works (EXW) on 31 July 2026, reflecting continued demand from domestic steelmakers amid a firm raw material cost environment.
• Sponge iron prices climb on improved sentiment: According to BigMint’s assessment, C-DRI (FeM 80%) prices in Rourkela increased by INR 300/t ($4/t) w-o-w to INR 25,300/t ($266/t) on 31 July 2026, supported by improved market sentiment. However, trading activity remained measured as buyers turned cautious following the sharp price rise, limiting purchases to immediate requirements.
• Rebar prices up on tighter spot supply: Rebar (12-25mm, IF Route, Fe 500, IS 1786) prices increased w-o-w by INR 500/t ($5/t) to INR 46,500/t ($487/t) exw Rourkela on 31 July. The uptrend was driven by tighter spot availability following planned maintenance at major integrated steel plants, which reduced distributor inventories. Firm market sentiment and selective stock replenishment by buyers, amid expectations of further price increases, continued to support prices.

Outlook

BigMint analysis expects Odisha iron ore prices to remain firm in the coming week, supported by seasonal supply constraints and continued demand. Although pellet consumption is likely to increase as an alternative to lump ore, lump prices are expected to stay elevated due to limited local availability.