- OMC schedules auction on 20 July for 2.5 mnt iron ore
- Lumps prices rise INR 100/t w-o-w on strong demand
BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 4,900/t ($51-52/t) ex-mines on 18 July 2026. The Odisha iron ore market remained largely stable this week as steelmakers continued to procure material to meet immediate needs and preferred to maintain a cautious stance ahead of the upcoming OMC auction. Meanwhile, lumps prices saw a hike of around INR 100/t in the mid- to high-grade segment amid active trades.
Auctions, deals
BigMint recorded deals for around 750,000 t of iron ore outside of auctions, concluded by steelmakers via traders and miners.
Odisha Mining Corporation (OMC) will auction 2.54 million tonnes (mnt) of iron ore on 20 July, comprising 1.66 mnt of fines and 0.83 mnt of lumps. While the miner has kept lumps floor prices unchanged, it has reduced fines floor prices by INR 50/t m-o-m for mid grade fines, while for higher-grade base prices have been increased by INR 100/t for the upcoming auction.
Meanwhile, the miner reduced the offered quantity by around 0.62 mnt in July against last month, following the restrictions on lower-grade Fe 55-60% iron ore by DMG Odisha.
Rationale
- T1- Five (5) deals for Fe 62% fines were recorded in the publishing window, and all were considered for price computation. This was given 50% weightage for index calculation.
- T2 – BigMint received fourteen (14) 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.
Market highlights
The availability of Fe 55-60% iron ore was constrained due to difficulties in obtaining dispatch permissions. As a result, offers in this grade bracket were limited throughout the week, restricting trading activity despite the presence of buying interest.
A miner commented, “We are not getting lower grade dispatch permission, so currently only selling the Fe60+% material in the market.”
In contrast, the Fe 60%+ Fe segment witnessed relatively stronger activity. Improved supply from miners encouraged a few aggressive transactions, while a couple of miners concluded bulk deals for higher-grade material ahead of the OMC auction.
Several steelmakers, however, chose to postpone fresh bookings and wait for the auction outcome before taking procurement decisions.
A buyer informed, “The OMC auction is expected to provide better indication of market direction. Most buyers are comfortable meeting immediate requirements and will reassess their positions after the auction.”
Towards the end of the week, the increase in sponge iron and semi-finished steel prices improved buying sentiment, offering support to the iron ore market after a relatively cautious trading week.
In the iron ore lumps segment, the price gap between 5-18 mm and 10-40 mm material narrowed further. Market participants attributed the premium for larger-sized lumps to stronger demand from blast furnace operators, as BF-grade ore generates lower fines during processing and improves operational efficiency.
Factors affecting iron ore prices
Pellet prices rise w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil surged by INR 200/t w-o-w to INR 8,000/t ($81/t) loaded to wagon on 17 July. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur increased by INR 200/t to INR 9,100/t ($93/t) exw.
Sponge iron surge w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela rose by INR 300/t ($3/t) w-o-w to INR 24,600/t ($258/t) on 18 July.
Rebar prices stable m-o-m: Rebar (12-25mm, IF Route, Fe 500, IS 1786) prices remained stable w-o-w at INR 40,500/t ($425/t) exw Rourkela on 18 July.
Outlook
BigMint believes the Odisha iron ore market will remain rangebound in the near term. Clearer pricing trends and procurement strategies will emerge after the conclusion of the OMC auction.
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