India: Iron ore concentrate prices remain firm, all eyes on OMC auction

• Suppliers gain leverage amid limited material availability
• Demand to increase further as construction activity picks up

BigMint’s bi-weekly assessment for India’s iron ore concentrates (Fe 62%) remained steady at INR 4,700/tonne ($53/t) ex-works Jabalpur on 19 November, in line with the previous evaluation on 15 November. Market participants highlighted that prices continued to exhibit resilience, buoyed by steady buying interest. In fact, a few trades were heard at slightly higher levels, signalling the underlying strength in this grade.

Meanwhile, Fe 63% concentrate was heard quoted in a notably higher range of INR 4,850-5,000/t ($56-58/t) ex-works. Actual deal activity remained absent at these levels, as buyers considered them to be elevated and adopted a cautious stance amid the widening gap between bids and offers.

A Jabalpur-based seller stated that demand for iron ore concentrate remains healthy, but supply is lagging noticeably. He highlighted a clear material shortage in the region, primarily due to the extended monsoon, which has pushed mining and logistics activities back by nearly 1-1.5 months. This supply tightness is beginning to reflect in market sentiment.

He added that prices may witness an upward movement in the coming days as buyers continue to compete for the limited material. With stocks running thin and procurement cycles tightening, the market is gradually shifting in favour of sellers.

He further added that government-sector construction activity is expected to gain strong momentum during the winter months. As infrastructure projects pick up pace, overall demand for raw materials, including iron ore concentrate, is likely to increase, potentially adding further upward pressure on prices.

Odisha Mining Corporation (OMC) has scheduled an auction of 2.94 mnt of iron ore on 19 November, comprising 1 mnt of lumps and 1.939 mnt of fines. The miner has trimmed the base prices of lumps by INR 200/t, while keeping fines prices unchanged on an m-o-m basis. Market participants are closely watching the upcoming auction, as its outcome is expected to set the tone for pricing in the near term.

Rationale

• One (1) trade was recorded in this publishing window and was taken into consideration, receiving a 50% weightage.
• Eight (8) offers and indicative prices were heard, and six (6) were taken into consideration as T2 trades, receiving 50% weightage.

Factors supporting iron ore concentrate prices

• Pellet prices remain firm in Raipur: PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained stable at INR 9,700/t ($110/t) DAP on 18 November 2025 compared to the previous assessment on 14 November. Market participants stated that Raipur-based producers concluded a few trades with both local and outstation buyers at prevailing offers, reflecting steady demand. The stability in pellet prices is largely attributed to the recent improvement of around INR 700/t ($8/t) in sponge iron and semi-finished steel markets, which strengthened overall sentiment and supported consistent buying interest in the region.
• Odisha iron ore prices inch up w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index increased by INR 100/t w-o-w to INR 5,500/t ($62/t) ex-mines on 15 November 2025. The market saw a notable uptick in buying interest as traders and steelmakers prepared for the upcoming Odisha Mining Corporation (OMC) auction. The limited availability of fresh material in the spot market further tightened supply, prompting prices to firm up. A few trades were reported at comparatively higher levels, reflecting stronger sentiment ahead of the auction.

Outlook

Iron ore concentrate prices are expected to remain supported in the near term as a demand-supply gap persists and fresh material availability stays limited. The upcoming OMC auction will play a crucial role in determining immediate price direction, with market participants awaiting clear signals before revising offers. Supply delays caused by the extended monsoon, coupled with firm pellet, sponge iron, and semi-finished steel prices, are likely to keep sentiment positive.