India: NMDC reverts to base price model, announces iron ore prices for Jan’26

• India’s crude steel output rises y-o-y in H1FY’26 but iron ore supply tightens
• Indian primary mills raise finished steel list prices

India’s largest merchant iron ore mining company, NMDC, announced its list prices of iron ore CLO (calibrated lump ore) and fines on 09 January 2026, BigMint learnt from sources. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 5,150/tonne (t) ($57/t) and of iron ore fines (-10 mm, Fe 64%) at INR 3,900/t ($43/t). Prices are on FOR basis from the miner’s Bacheli complex and exclude royalty, DMF, and NMEDT. However, official confirmation from NMDC is still awaited.

NMDC has shifted its pricing structure from a tax-inclusive model to one that excludes royalty, DMF, and NMEDT charges.

Market overview:

• India’s crude steel output rises y-o-y in H1FY’26 but iron ore supply tightens – India’s crude steel production witnessed a strong growth of 12.4% y-o-y in the first six months of FY’26, reaching 82.3 million tonnes (mnt) compared to 73.2 mnt in the same period last year. This surge underscores the continued momentum in domestic steelmaking, supported by robust infrastructure demand and strong manufacturing activity. However, iron ore production remained largely stable at around 137 mnt, indicating a supply constraint at the mining level.
• OMC iron ore fines auction fetches stable bids: In OMC’s iron ore fines auction for 2.22 mnt (Fe 51-62%) on 19 December, around 2.14 mnt (97%) was booked at INR 2,500-6,000/t. The lots received premiums ranging from INR 50 to 1,100/t, with INR 750/t being the average premium over base prices. Bids (weighted average) remained stable m-o-m. For 1.193 mnt of iron ore lumps (Fe 60-65%), the entire material was booked at INR 5,700-8,600/t, with premiums of INR 1,050-3,300/t. Weighted average bids dropped by around INR 250/t m-o-m, driven by a sharp decline in sponge iron prices in December first half.
• Global iron ore prices rise m-o-m: Global iron ore fines Fe 62% prices inched up by around $2/t m-o-m in Dec’25 amid steady demand and restocking, while miners actively offered material. Medium-grade fines drew most interest, while demand for other grades remained weak. Port prices held steady despite stronger steel data, with thin trading limiting gains. Mills continued to favour medium and low-grade fines, though winter typically supports lump demand.
• PELLEX rises following a hike in offers, strong steel market sentiments – PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, rose to INR 9,700/t ($108/t) DAP on 06 Jan’26. Raipur-based pellet producers have increased offers for Fe 62.5-63% (+/-0.5) pellets by INR 100/t ($1/t) to INR 9,500-9,600/t ($105-106/t) exw. A sudden spike in billet and steel offers led to the rise in pellet prices.
• Indian primary mills raise finished steel list prices in quick succession after last hike – Leading Indian steelmakers have again raised list prices of hot-rolled coil (HRC) and cold-rolled coil (CRC) by INR 750/tonnes (t) on 30 December after increasing them by 750-1,000/t in mid-December. BigMint’s benchmark assessment (bi-weekly) for HRC (IS2062, Gr E250, 2.5-8 mm/CTL) rose sharply by INR 1,500/t ($17/t) w-o-w to INR 49,800/t ($554/t) on 30 December against INR 48,300 ($537/t) on 23 December. Indian Tier-I mills increased rebar prices by up to INR 2,000/tonne (t) ($22/t) during the last week of December 2025, sources informed BigMint. Post-revision, list prices stood at INR 49,000-50,500/t ($545-562/t) on landed basis.