- Iron ore trade activity picks up in Odisha
- Buyers waiting for upcoming OMC auction
Odisha’s iron ore market remained largely stable this week as trading activity improved. The surge in domestic pellet prices and active export deals over the past few weeks have fuelled buying interest. Market participants noted that inquiries from major buyers have increased, keeping market sentiment positive.
BigMint’s Odisha iron ore fines (Fe 62%) index inched down by INR 100/t ($1/t) w-o-w to INR 4,800/t ($55/t) ex-mines on 8 February 2025. Around 35,000 t iron ore fines (Fe60-62%) deals were concluded at INR 4,700-5,000/t ($54-57/t) ex-mines this week. Overall, around 620,000 t of iron ore (fines and lumps) deals were recorded from Odisha this week.
A trader from Odisha commented: “Demand has been steady, especially for low-grade fines, as exporters continue to book shipments. The buyers restocking for February and March; so, we expect more deals to materialise soon. Some steelmakers are waiting for the next OMC auction to be scheduled in mid-February for more price clarity and purchasing of higher grade iron ore.”
Meanwhile, some miners still hold sufficient environmental clearance (EC) limits for this financial year, allowing them to participate actively in trades. Additionally, a few miners are expected to open their February sales next week, and auctions are also scheduled.
A sponge iron producer informed, “Although trading activity has improved, buyers are still cautious about prices. The sponge iron and finished steel prices falling in the eastern region, many buyers are opting for more reasonable material alternatives.”
A miner said, “We are continuously receiving inquiries for iron ore which shows that optimistic sentiments floating in the market. We have increased the mid-grade fines offers while keeping the same offers for other grades.”
Factors affecting iron ore market:
Pellet offers up w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil increased by INR 100/t w-o-w to INR 8,300/t ($96/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur inched down INR 100/t ($1/t) w-o-w to INR 9,300/t ($107/t) exw on 7 February.
Sponge iron prices stable w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela fell by INR 400/t ($5/t) w-o-w to INR 25,700/t ($293/t) on 8 February. Similarly, steel billet (100*100 mm) offers in Rourkela declined by INR 500/t ($7/t) w-o-w to INR 38,000/t ($433/t) today.
Rationale
- T1 – Three (3) deals of Fe62% fines were recorded in the publishing window, and all were considered for price computation and given a 50% weightage for index calculation.
- T2 – BigMint received twenty-seven (27) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Twenty (20) were taken into consideration and given a 50% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.
Raw material export market:
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export index rose by $0.5/t w-o-w to $68/t FOB east coast, India, on 6 February. A deal of 80,000 t of iron ore fines (Fe56-57%) was concluded from the eastern coast at $66/t FOB in this publishing window.
India pellet (Fe 63%, 3% Al) export index (FOB east coast rose by $0.5/t w-o-w to $105.5/t on 7 February. A domestic pellet-maker concluded an export deal for around 100,000 t of pellets (Fe 63%, 2% AL2O3) at $108-110/t FOB India this week, sources informed BigMint.
Outlook
According to BigMint analysis, the market outlook remains optimistic as demand persists, though price stability will depend on upcoming OMC iron ore auctions and steel price movements.
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