- Monsoon disruptions limit ore availability
- Weak downstream prices keep buyers cautious
BigMint’s Odisha iron ore fines (Fe 62%) index remained unchanged w-o-w at INR 5,000/tonne (t) ($52/t) ex-mines on 14 August 2026. Limited spot activity and need-based procurement during the monsoon kept prices stable, while rain-related disruptions to mining led tightened material availability.
Buying remained cautious as higher coal costs and weaker semi-finished and finished steel prices continued to pressure sponge iron margins. Mills were also carrying comfortable inventories following the July OMC auction and pre-monsoon stock build-up. With the market awaiting the August OMC auction for fresh price cues, buyers continued to close previously booked deals rather than build significant fresh inventory.
Auctions, deals
No major direct-sale deals were reported for Fe 62% fines during the assessment period.
However, the latest SAIL Bolani auction drew healthy participation for Fe 60.78% iron ore tailings, while the OMDC CLO (5-40 mm) auction also saw active buying interest. Odisha-based miners sold around 24,270 t of iron ore through auctions during the week, down from the previous week’s volume.
Rationale
- T1- Zero (0) deal for Fe 62% fines were recorded in the publishing window, and was given 0% 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. Eighteen (18) were taken into consideration and given 100% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.
Rain disrupts supply, but weak demand caps price upside
“Ore movement remains weak, while semi-finished and finished steel continue to under pressure,” a market participant said.
A Kharagpur-based buyer said persistent rainfall and stricter checks had disrupted low-grade ore dispatches and transportation. However, these supply constraints have so far provided only limited price support, as buyers remain reluctant to build inventories.
A miner noted that enquiries remain healthy, but elevated coal costs are squeezing sponge iron margins, limiting aggressive procurement.
Overall, the market remains soft-to-stable, with weather-related supply constraints offsetting weak downstream demand and cautious buying.
Factors supporting iron ore prices
- Pellet prices remain rangebound as buyers stay selective: Odisha’s Barbil Fe 62.5% (6-20 mm) pellet prices held at INR 8,400/t ($88/t) LTW, while Durgapur prices were unchanged w-o-w at INR 9,350/t ($97.9/t) exw on 14 August. Trading remained subdued, with buyers limiting purchases to immediate requirements and sellers showing little inclination to adjust offers.
- C-DRI prices gain as procurement picks up: Rourkela C-DRI (FeM 80%) prices rose INR 400/t ($4.2/t) w-o-w to INR 26,200/t ($274.6/t) exw on 14 August 2026. Improved buying interest lent support to prices, although high input costs and weak downstream steel demand kept buyers cautious.
- Rebar prices stay flat amid subdued downstream activity: Rourkela rebar (12-25 mm, IF Route, Fe 500, IS 1786) prices remained unchanged at INR 46,500/t ($487.3/t) exw on 14 August 2026. Buyers continued to procure on a requirement basis, while stable seller offers and limited demand kept the market largely unchanged.
Outlook
BigMint expects Odisha iron ore prices to remain stable-to-firm in the coming weeks, with the market awaiting the August OMC auction for clearer price direction. Market participants are expecting higher auction prices, which could strengthen sellers’ price expectations and provide support to spot prices.
However, weak movement of ore, and cautious sponge iron procurement could limit the extent of any increase. Rain-related mining and dispatch disruptions may provide additional support, while the August auction outcome will be the key trigger for price discovery and market sentiment.
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