- Need-based deals heard for mid-grade fines
- Higher grade fines supply continues to remain tight
Iron ore prices in Odisha remained largely stable this week, supported by moderate trading activity across both fines and lump categories. Market participants reported that steelmakers are primarily engaging as high grade material availability is still a challenge during the ongoing monsoon season.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index inched up by INR 50/t ($0.5/t) w-o-w to INR 4,850/tonne (t) ($57/t) ex-mines on 5 July 2025. Though offers for the same coming around INR 4,900-5,000/t ex-mines. Notably, deals for around 750,000 t of iron ore (fines and lumps) were recorded by BigMint in Odisha, concluded by merchant sellers with larger stack of the mid-grad fines material.
Market participants are looking for more affordable materials, while some traders closing active deals this week.
Market update
A steelmaker said, “There is no significant recovery in pellet or sponge iron prices, so the current iron ore prices still appear expensive when compared to production costs. We are cautious about procurement.”
Despite subdued downstream prices, some miners reported a steady flow of inquiries for July, especially from long-term clients. An Odisha-based mining firm said, “We are seeing inquiries for July deliveries and are finalizing deals based on the availability of stock. However, heavy rainfall in certain mining belts has led to temporary production halts.”
This disruption has prompted a few miners to hold back offers this week, awaiting better clarity on both supply conditions and price direction. Another miner added, “We are not quoting this week due to ongoing rains and uncertain logistics. We expect to come up with offers once we get a clearer picture next week.”
A trader remarked that the prices in the market remain uncertain due to pressure from the sponge iron and raw pellets sectors. Buyers are anticipating price drops; however, concerns persist about the limited availability of higher-grade materials and the potential decrease in higher-grade fines.
With the Odisha Mining Corporation (OMC) auction around the corner in mid of this month, market sentiment remains cautious. Buyers are likely to continue purchasing on a need basis, and significant price movements are unlikely unless auction outcomes or weather conditions alter the demand-supply dynamics.
Factors affecting iron ore prices
Pellet offers stable w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil remained stable w-o-w at INR 7,900/t ($91/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur rose by INR 150/t ($2/t) w-o-w to INR 9,000/t ($105/t) exw on 4 July.
Sponge iron prices up w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela rose by INR 200/t ($2.5/t) w-o-w to INR 24,100/t ($283/t) on 5 July. Meanwhile, steel billet (100*100 mm) offers in Rourkela fell by INR 100/t ($1/t) w-o-w to INR 36,300/t ($425/t) today.
Rationale
- T1- Four (4) deals for Fe62% fines were recorded in the publishing window, and three (3) were considered for price computation. These were given 50% weightage for index calculation.
- T2 – BigMint received Twenty (20) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Fifteen (15) were taken into consideration and given 50% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.
Outlook
According to BigMint’s analysis, prices of iron ore in Odisha are expected to increase as high grade material availability, stacking and logistics are likely to remain impacted in the coming weeks.
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