- Miners offering low volumes for sales
- Sponge iron, semis tags down sharply w-o-w
Iron ore prices in Odisha remained firm this week, even as trading activity slowed down due to a shortage of material availability in the region. Persistent monsoon rainfall has significantly hampered both production and dispatch operations of miners, leading to tight supply conditions in the spot market.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,350/tonne (t) ($61/t) ex-mines on 2 August 2025. This week, trading activity was moderate as available volume was low. Some miners sold iron ore at revised offers, while a few others waited for next week to revise offers.
Around 260,000 t of deals were recorded by BigMint in Odisha. Some high-grade fines deals were concluded at INR 4,900-5,600/t ($56-64/t) ex-mines amid limited availability of material.
Market highlights
Currently, miners are dispatching material from earlier bookings, while several major miners have refrained from offering fresh material. A prominent miner from Odisha mentioned, “We are facing logistical challenges due to heavy rainfall, which has affected both production and dispatch. As a result, we have paused fresh offers for now and will evaluate market conditions next week.”
Despite the limited availability, buying interest remains strong, with buyers opting to secure material wherever possible. A steelmaker commented, “We are picking up iron ore in small lots whenever the opportunity arises. There’s uncertainty in the market, so it’s better to stay covered.”
However, some buyers remain in wait-and-watch mode, anticipating clarity on pricing trends in the coming days. Traders had concluded some deals, further releasing the supply pressure in the market, but the bulk orders are yet to be accepted in the region.
The supply squeeze has supported iron ore prices, even as downstream segments saw a bearish turn. Sponge iron and semi-finished steel prices witnessed sharp corrections this week, weighed down by weak market sentiments and tepid demand. Interestingly, pellet prices in Odisha remained largely stable, though some regions witnessed a sharp drop due to a weakened downstream market.
Factors affecting iron ore prices
Pellet offers show mixed trend 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 ($99/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur fell by INR 400/t ($5/t) w-o-w to INR 9,400/t ($108/t) exw on 1 August.
Sponge iron prices fall w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela decreased by INR 350/t ($4/t) w-o-w to INR 26,000/t ($298/t) on 2 August.
Billet sees w-o-w drop: Meanwhile, steel billets (100*100 mm) offers in Rourkela dropped by INR 400/t ($5/t) w-o-w to INR 37,000/t ($424/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 sixteen (16) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Thirteen (13) 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 will remain firm in the near term, backed by seasonal demand and continued supply tightness. Buying inquiries continue to pour in, indicating strong underlying demand despite external market pressures.
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