- OMC auction sees strong turnout, with over 2 mnt booked
- Fines bids rise INR 300/t m-o-m, lumps stay firm in auction
Iron ore prices in Odisha stayed firm this week following the recent OMC auction, where bids for fines rose while those for lump remained largely stable compared to the July event. The auction witnessed strong participation from steelmakers, with over 2 million tonnes (mnt) of material booked. Meanwhile, supply disruptions due to the monsoon kept iron ore prices in Odisha stable w-o-w.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,500/tonne (t) ($63/t) ex-mines on 23 August 2025. Deals for around 420,000 t were recorded by BigMint in Odisha, excluding the OMC auction.
In OMC’s iron ore auction of 2.395 mnt (1.493 mnt fines and 0.902 mnt lumps) on 19 August, around 1.472 mnt (98.6%) of fines (Fe 51-65%) and 0.889 mnt (98.6%) of lumps (Fe 60-65%) were booked at INR 2,650-5,550/t and 5,400-7,250/t, respectively. Fines received premiums of INR 50-700/t over base prices, while lumps fetched up to 26% premium over the base prices. Fines bids (weighted average) rose by INR 300/t m-o-m, while lumps remained largely stable. The miner had increased base prices by INR 300/t and INR 350/t m-o-m for most fines and lumps lots, respectively.
The hike in prices was led by a material shortage due to the heavy monsoon, which impacted the production and dispatch of iron ore.
Market highlights
Market participants noted that aggressive bidding in OMC’s auction was largely driven by material shortages and dispatch disruptions caused by the ongoing monsoon season. A steelmaker noted, “The heavy rainfall has affected mining operations and transportation, pushing buyers to secure supplies aggressively in the auction.”
Meanwhile, other merchant miners are yet to release fresh offers, closely assessing market trends before deciding on pricing. Given the scarcity of available material, offers are expected to remain firm in the short term. A miner stated, “We are currently not offering in the market due to the lack of material. Revised offers for iron ore may be announced next week.”
However, buyers who have already secured cargoes in the auction are likely to adopt a cautious stance, waiting for greater clarity regarding price movements. A buyer stated, “We are watching market trends closely before making additional purchases.”
On the downstream side, pellet prices remained stable w-o-w, but pressure persisted in the sponge iron and semi-finished steel segments, which weighed on overall market sentiment. “Weakness in sponge and semis may limit the upside potential for raw material prices unless fresh demand emerges,” a trader observed.
Factors affecting iron ore prices
Pellet offers firm w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil remained stable w-o-w at INR 8,600/t ($98/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur inched up by INR 100/t ($1/t) w-o-w to INR 9,500/t ($108/t) exw on 22 August.
Sponge iron prices drop w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela fell by INR 300/t ($3.5/t) w-o-w to INR 25,800/t ($296/t) on 23 August.
Billet down w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela fell by INR 250/t ($3/t) w-o-w to INR 36,700/t ($420/t) today.
Rationale
- T1- Four (4) deals for Fe62% fines were recorded in the publishing window, and two (2) were considered for price computation. These were given 50% weightage for index calculation.
- T2 – BigMint received twenty-two (22) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Twenty (20) 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, the Odisha iron ore market is expected to gain clearer direction next week once miners revise their offers, with both supply constraints and demand-side pressures playing a decisive role.
Leave a Reply