India: Odisha iron ore fines index remains stable w-o-w ahead of next week’s OMC auction

• Over 250,000 t of iron ore receive bids in AM/NS’s auction
• Buyers wait for OMC’s auction base price, quantity details

Iron ore prices in India’s Odisha region remained largely stable this week, as market activity continued to be driven by limited availability and cautious buying sentiment ahead of the upcoming festive season. Merchant miners conducted a few auctions recently, which received mixed responses — all the offered iron ore fines were sold, while lump sales witnessed moderate interest from buyers.

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 11 October 2025. BigMint recorded around 370,000 t of iron ore deals this week, concluded directly by the steelmakers.

AM/NS sold 260,000-t iron ore from Odisha on 10 October from Thakurani and Sagasahi mines. From Thakurani mines, 68,000-t fines (Fe 57-59%) were booked at INR 3,850-4,600/t (INR 100/t premium); 48,000-t CLO (5-18 mm, Fe 56.5-59%) remained unsold (base prices INR 5,100-5,700/t). From Sagasahi, 48,000-t lumps (5-18mm, Fe 58.5-60.5%) were booked at INR 6,425-7,125/t and 96,000-t fines (Fe 53.5-56.5%) at INR 2,925-3,825/t against base prices INR 5,925-7,125/t and INR 2,775-3,600/t, respectively. Around 48,000-t residual fines (Fe 54%) were booked at INR 2,000/t (including royalty).

Market highlights

Market participants noted that procurement during the week was mainly on a need basis, as most miners remained overbooked and were prioritising dispatches from previously concluded deals. A trader informed BigMint, “We are not getting much fresh material in the market. Whatever comes up is being picked by regular buyers for immediate requirements.”

Meanwhile, a few miners are facing production constraints and have refrained from offering fresh quantities in the open market. A miner said, “We are getting consistent inquiries from steelmakers but are unable to offer due to low production.”

Buyers are now adopting a wait-and-watch approach, anticipating some downward correction in prices before Diwali. A steelmaker said, “There is pressure from the downstream steel segment, and we expect some easing in ore prices once the OMC auction details are out.”

Pellet producers expressed concerns over the price disparity between raw materials and finished products. An Odisha-based pellet manufacturer mentioned, “Iron ore prices have stayed firm, but the sponge iron and billet markets are weak. Our buyers are quoting lower counters, which makes it difficult for us to purchase ore at current levels.”

The Odisha Mining Corporation (OMC) has scheduled its monthly iron ore auction on 17 October, with base prices and quantities expected to be announced early next week. Market participants believe the auction outcome will provide clearer direction for iron ore pricing in the second half 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 8,550/t ($96/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 10 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 250/t ($3/t) w-o-w to INR 25,250/t ($285/t) on 11 October.

Billet prices drop w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela dropped by INR 300/t ($4/t) w-o-w to INR 35,200/t ($397/t) today.

Rationale

• T1- Three (3) deals for Fe 62% 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 Seventeen (17) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Fifteen (15) 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 range-bound until further clarity emerges from the upcoming OMC auction.