- Around 2.8 mnt of iron ore sold in OMC auction
- Lower-grade fines receive high premiums on active demand
Odisha’s iron ore market remained firm this week as steelmakers showed strong participation in the latest auction conducted by the Odisha Mining Corporation (OMC). Despite a correction in base prices by the miner, bidding activity remained robust, reflecting the tight supply situation and steady demand from the steel sector.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,300/tonne (t) ($60/t) ex-mines on 18 October 2025. BigMint recorded around 200,000 t of iron ore deals this week, concluded directly by the steelmakers.
In OMC’s iron ore fines auction of 1.871 mnt (Fe 51-62’%) on 17 Oct’25, around 1.82 mnt (97%) of fines were booked at INR 2,500-5,700/t. Bids (weighted average) rose marginally by INR 50/t m-o-m. Around 0.954 mnt of iron ore lumps, 100% material (Fe 60-65%) was booked at INR 5,450-7,750/t, with premiums of INR 550-1,150/t while few lots sold upto INR 2,550/t premium. Weighted average bids remained firm m-o-m. Earlier, the miner had decreased base prices by INR 50-250 and 550/t m-o-m for fines and lumps, respectively.
Few more auctions by SAIL-RSP, OMDC, and other miners witnessed active participation from steelmakers, although the auctions were limited compared to the OMC auction.
However, prices for sponge iron, semi-finished, and downstream steel have seen a significant decline this week, which may lead to aggressive iron ore deals in the near term.
Market highlights
Market participants indicated that limited material availability in the open market prompted steelmakers to secure bulk quantities through the OMC auction. A trader informed, “Private miners are operating at reduced production levels, leaving steel producers with fewer sourcing options. This pushed them to bid aggressively to ensure raw material inventory.”
Interestingly, exporters were also active in this round of auctions. Low-grade iron ore fines attracted higher bids compared to the base price as exporters sought to build inventories for upcoming shipments.
The firm bidding trend came despite weakness in the semi-finished and finished steel markets, where prices have continued to drop due to sluggish buying sentiment and lower demand. However, steelmakers’ need-based procurement supported auction participation. A steelmaker mentioned, “Even though steel margins are under pressure, mills cannot risk production disruption due to raw material shortages.”
Other private miners are reportedly monitoring market dynamics closely and are expected to announce fresh offers after the Diwali festival. Industry insiders believe that with steady steel production and active export buying, iron ore prices are likely to stay firm in the near term.
A miner commented, “Given the present market tightness and strong auction response, we expect post-festival offers to trend northward, suggesting that the firm tone in Odisha’s iron ore market may persist through the end of October.”
Factors affecting iron ore prices
Pellet prices edge down w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil inched down by INR 50/t ($0.5/t) w-o-w to INR 8,500/t ($95/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur remained stable w-o-w at INR 9,250/t ($104/t) exw on 17 October.
Sponge iron prices fall w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela decreased by INR 750/t ($8/t) w-o-w to INR 24,500/t ($279/t) on 18 October.
Billet prices drop w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela dropped by INR 900/t ($10/t) w-o-w to INR 34,300/t ($390/t) today.
Rationale
- T1- Four (4) deals for Fe 62% 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 Sixteen (16) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Twelve (12) were taken into consideration and given 50% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.
Outlook
BigMint’s analysis indicates that iron ore prices in Odisha are likely to remain on the positive end with other private miners offers are expected in the next week.
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