- Sponge iron, billet prices see sharp hike w-o-w
- Miners hold offers amid price uncertainty in market
Iron ore prices in the Odisha market remained firm this week, as assessed on 3 January 2026, supported by active trading activity and a sharp improvement in downstream steel prices. Market participants noted that trades are now getting concluded at higher levels, while availability of material remains limited.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index rises by INR 50/t ($0.5/t) w-o-w to INR 5,800/t ($65/t) ex-mines on Saturday. BigMint recorded deals for around 400,000 t of iron ore this week concluded directly by steelmakers.
Market highlights
Sources indicated that several bulk orders were finalised earlier in the week, following which miners have become selective in accepting fresh bookings. With inventories tightening and offers largely restricted, buyers were seen securing material on a need-basis at prevailing prices.
A trader based in eastern India said, “The market is clearly supported by the strong movement in sponge iron and billet prices. With limited offers available, sellers are comfortably holding prices.”
Sponge iron prices increased by around INR 1,500/t, while billet prices surging by INR 3,000-4,000/t over the last few days, further strengthening iron ore market sentiment.
Major miners have kept their offers on hold and are expected to announce fresh prices in the next couple of days. According to BigMint sources, producers are reassessing market dynamics amid volatility in downstream segments.
A miner said, “We have temporarily closed sales and will revise new offers next week in line with fresh trades and steel price movements.”
This has added to the cautious optimism in the market, as participants await clearer price signals.
Meanwhile, buyers have shifted to a wait-and-watch mode, refraining from aggressive procurement and closely monitoring upcoming miner offers. A buyer informed, “There is uncertainty due to fluctuating sentiments, so most buyers are waiting for clarity before committing to large volumes.”
Market participants expect iron ore prices in Odisha to remain firm currently. Better clarity on price direction is likely to emerge next week once major miners release their revised offers and fresh trades take place.
Factors affecting iron ore prices
Pellet prices rise w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil rose by INR 3,00/t ($3/t) w-o-w at INR 8,800/t ($97/t) loaded to wagon on 3 January. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur increased by INR 300/t ($3/t) to INR 9,800/t ($109/t) exw.
Sponge iron prices rise w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela increased by INR 1,500/t ($17/t) w-o-w to INR 25,800/t ($286/t) on 3 January.
Billet prices up w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela increased by INR 3,450/t ($38/t) w-o-w to INR 40,500/t ($450/t) on 3 January.
Rationale
- T1- Three (3) deals for Fe 62% fines were recorded in the publishing window, and one (1) was considered for price computation. These were given 50% weightage for index calculation.
- T2 – BigMint received nineteen (19) 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
BigMint notes that iron ore prices may rise next week with fresh offers from miners, and trades are expected to be concluded at new offers.
Leave a Reply