- OMC auction witnesses active participation
- Market continues to face production losses
Iron ore concentrate prices in Jabalpur, central India, witnessed an increase this week. Aggressive bidding in Odisha Mining Corporation’s (OMC’s) recent iron ore auction, and positive sentiments from the pellet and Odisha iron ore markets have kept concentrate offers supported, BigMint reported.
BigMint’s bi-weekly index for Fe 62% concentrates stood at INR 4,550/t exw ($53/t) exw, up by INR 100/t ($1/t) as against the last assessment on 19 July. Meanwhile, Fe 63% iron ore concentrate prices are hovering in the range of INR 4,600-4,700/t ($53–54/t) exw, reflecting a firm pricing outlook supported by current market fundamentals.
However, persistent monsoon conditions have severely impacted logistics and supply chains in the region, causing a decline in demand. Continuous rainfall has led to transportation bottlenecks, while intermittent power outages and voltage fluctuations have disrupted production across several facilities. These challenges have created operational inefficiencies, restricting offtake from buyers struggling to maintain regular processing and dispatch operations.
Moreover, railway movement restrictions and poor road connectivity in key mining belts have further strained the supply chain. Despite steady underlying demand, these logistical constraints and supply-side disruptions have limited material flow, resulting in cautious buying. Market participants expect the situation to remain tight until weather conditions improve and operations normalize.
Some sellers are reportedly holding off on revising their offers until existing orders are fulfilled. A Jabalpur-based seller commented, “A rise in OMC’s bid prices, strengthening pellet prices, and improved export sentiment have supported higher concentrate offers in the region. However, deals at these elevated price levels are yet to be concluded.”
Rationale
- No trade was recorded in this publishing window.
- Eight (8) offers and indicative prices were heard, of which six (6) were taken into consideration as T2 trades, receiving 100% weightage.
Why have concentrate offers increased?
- Bids surge in OMC’s iron ore fines auction: OMC conducted an auction for 1.348 mnt of iron ore fines (Fe 51-65%) on 19 July, 2025 in which 1.304 mnt (97%) was booked at INR 2,550-5,350/t ex-mines, with a premiums of INR 50-850/t. Bids (weighted average) increased by INR 150/t m-o-m. Earlier, OMC had lifted up base prices by INR 150/t m-o-m for few lots. Limited availability of iron ore due to monsoon and rise in pellet prices supported the fines auction bids.
- Raipur’s pellet offers rise by INR 200/t ($2.5/t):Raipur-based pellet producers raised their offers for Fe 63% (+/-0.5%) material by INR 200/t ($2.5/t) to INR 9,700-9,800/t ($112-113/t) exw. However, no deals were recorded at revised offers amid cautious buying sentiments. Meanwhile, some suppliers kept their sales closed and focused on dispatching previously booked material. Sponge PDRI prices increased by INR 600/t w-o-w to INR 24,100/t exw Raipur today.
Outlook
Iron ore concentrate prices are likely to remain supported in the coming week, driven by limited material availability amid ongoing monsoon-related logistical disruptions and production constraints. Additionally, firm pellet prices, recent gains in OMC auction bids may continue to push prices up. However, actual trade activity may remain subdued unless buyers show willingness to accept the elevated offer levels, especially with some suppliers prioritizing existing commitments before revising prices further.
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