- Market awaits next week’s OMC auction
- Small deals concluded, monsoon affects rake movements
Iron ore prices in Odisha remained firm this week, with trades concluded largely on as-needed basis by steelmakers. Market participants attributed the price stability to limited production and sustained inquiries from buyers, even as material scarcity continues due to persistent rainfall and disruptions in rake movement.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,500/tonne (t) ($63/t) ex-mines on 14 August 2025. Trades improved this week, but dispatches are still slow due to harsh weather and limited material availability.
Around 600,000 t of deals were recorded by BigMint in Odisha. Some high-grade fines deals were concluded at INR 5,500-5,600/t ($63-64/t) ex-mines amid limited availability of material.
Market highlights
Miners are holding their offers steady despite buyers actively scouting for cheaper material. A miner informed, “Availability is tight, and with continuous rain impacting production and dispatches, we don’t see scope for a price drop in the immediate term.”
Major steelmakers are now pinning hopes on the upcoming Odisha Mining Corporation (OMC) auction, scheduled for 19 August, for bulk procurement. The base price is expected to be announced in the coming days, which could set the tone for market direction. A steelmaker mentioned, “We are waiting for the OMC auction before making large bookings. That will give better clarity on where prices are heading.”
In the meantime, a few private miners are refraining from accepting new orders, focusing instead on fulfilling pending deliveries from earlier sales. On the downstream side, the sponge iron and semi-finished steel markets are largely rangebound, with prices trending lower today, creating a cautious buying sentiment in the iron ore market.
Market participants expect that the ongoing shortage will likely keep prices firm. A buyer noted, “Unless supply improves significantly, we expect the current firmness to continue. The market awaits clearer signals next week.”
Factors affecting iron ore prices
Pellet offers firm 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 ($98/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur fell by INR 300/t ($3.5/t) w-o-w to INR 9,400/t ($107/t) exw on 14th August.
Sponge iron prices stable w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela remained unchanged w-o-w to INR 26,100/t ($298/t) on 14 August.
Billet sees w-o-w stability: Meanwhile, steel billets (100*100 mm) offer in Rourkela remained stable w-o-w to INR 36,950/t ($422/t) today.
Rationale
- T1- Three (3) deals for Fe62% fines were recorded in the publishing window, and all were considered for price computation. These were given 50% weightage for index calculation.
- T2 – BigMint received twenty-seven (27) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Seventeen (17) 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 is anticipated to remain firm in the near term due to a shortage of materials. However, the market is expected to experience improved pricing dynamics next week following the OMC auction, which will help establish a tradable level. Bulk deals by steelmakers are expected to be fulfilled through this auction.
Leave a Reply