- Sharp hike in offers as availability shrinks
- Heavy rains impact production, dispatches
Iron ore prices in Odisha remained firm this week amid a shortage of material and sustained demand from steelmakers. Sources reported that trading sentiment remained sluggish despite underlying demand, primarily due to sharp price hikes by miners. Offers rose by INR 200-500/tonne (t) this week as miners struggled to manage limited availability.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index rose by INR 150/t (2/t) w-o-w at INR 5,500/tonne (t) ($63/t) ex-mines on 8 August 2025. This week, demand was present in the market, but the offered volume was low, and buyers were cautious due to rising prices.
Around 250,000 tons of deals were recorded by BigMint in Odisha. Some high-grade fines deals were concluded at INR 5500-5,800/t ($63-66/t) ex-mines amid limited availability of material.
Market highlights
A miner informed, “Continuous rainfall in the region has severely impacted production and dispatch activities over the past few weeks. Material availability is tight, and we are accepting only selected orders, while bulk orders are largely absent due to logistical constraints.”
Some miners have refrained from offering material altogether, citing pending dispatches from previous bookings and uncooperative weather conditions that are hampering operations. This has further strained supply in the merchant market.
Steelmakers, on the other hand, are finding the current prices unviable. A buyer said, “Iron ore prices are very high right now. Given that sponge iron and semi-finished steel prices are rangebound, procuring iron ore at these elevated levels is not cost-effective. We are only buying on an urgent requirement basis.”
Several buyers are now awaiting the upcoming Odisha Mining Corporation (OMC) iron ore auction in August, hoping for better bulk procurement opportunities at competitive rates.
Market participants expect prices to remain volatile in the short term, with fluctuations likely depending on the outcome of the OMC auction and weather-related disruptions in supply.
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 rose by INR 300/t ($3.5/t) w-o-w to INR 9,700/t ($111/t) exw on 8th August.
Sponge iron prices up w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela increased by INR 50/t ($0.5/t) w-o-w to INR 25,850/t ($295/t) on 8 August.
Billet sees w-o-w rise: Meanwhile, steel billets (100*100 mm) offers in Rourkela inched up by INR 50/t ($0.5/t) w-o-w to INR 36,850/t ($421/t) today.
Rationale
- T1- Five (5) deals for Fe62% fines were recorded in the publishing window, and four (4) were considered for price computation. These were given 50% weightage for index calculation.
- T2 – BigMint received twenty-three (23) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Eighteen (18) 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 expected to remain strong in the near term due to tight supply. In the coming days, participants anticipate better clarity as bulk deals may occur in OMC’s auction. Until then steelmakers are likely to continue trading only to meet immediate needs.
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