- Odisha iron ore index inched down by INR 50/t w-o-w
- Sharp fall in sponge iron and billet prices weighs on index
Prices and deals
BigMint’s Odisha iron ore fines (Fe 62%) index inched down by INR 50/t w-o-w to INR 5,500/t ($58/t) ex-mines on Saturday, 9 May 2026. It recorded deals for around 435,000 t this week, concluded directly by steelmakers with private miners and traders.
Meanwhile, some miners, such as SAIL, AMNS, and OMDC, offered iron ore through auctions, but these efforts did not attract buyers. Notably, out of the 255,000 t of iron ore offered, only 40,000 t was sold through the auction, highlighting the weak market sentiment.
Market highlights
Iron ore prices in Odisha remained under pressure this week amid weak downstream steel sentiments and a continued decline in pellet, sponge iron, and semi-finished steel prices. Market participants said subdued buying activity and cautious procurement strategies have weighed heavily on overall trade sentiments across the region.
Buyers were seen bidding significantly lower against miners’ offers in an attempt to maintain cost effectiveness amid poor finished steel demand. Several market participants also adopted a wait-and-watch approach, expecting further correction in raw material prices before entering fresh bookings.
A steelmaker said, “Weak liquidity in the market and persistent downtrend in pellet prices are putting additional pressure on iron ore prices. Most steel producers are currently focusing on maintaining operational margins rather than building raw material inventories, resulting in limited buying interest in the spot market.”
Meanwhile, a pellet producer stated, “Inquiries for pellet purchases remain extremely weak despite a recent drop in pellet offers. Even after lowering pellet offers, demand has not improved significantly. Since margins are under pressure, many producers are avoiding bulk procurement of iron ore fines.”
Pellet production costs are currently almost at par with prevailing market offers, discouraging producers from procuring iron ore fines aggressively at current price levels.”
Miners reported a subdued response in recent auctions. A miner mentioned, “A large portion of iron ore offered through auction remained unsold, with only a few lots attracting bids.”
Additionally, elevated imported coal prices have increased cost pressures for steelmakers, making them more sensitive to iron ore procurement costs. Steel producers are currently balancing high fuel costs with weak finished steel realizations, limiting their appetite for higher-priced raw materials.
Factors affecting iron ore prices
Pellet prices sharply fall: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil dropped by INR 100/t w-o-w to INR 8,400/t ($90/t) loaded to wagon on 8 May. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur fell by INR 100/t to INR 9,550/t ($102/t) exw.
Sponge iron prices drop w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela fell by INR 500/t ($5/t) w-o-w to INR 27,000/t ($286/t) on 9 May.
Billet prices stable w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela declined by INR 1,200/t ($13/t) w-o-w to INR 40,000/t ($424/t) on 9 May.
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. Twelve (12) were taken into consideration and given 50% weightage. To check BigMint’s iron ore assessment, pricing methodology, and specification document, click here.
Outlook
As per market inputs and BigMint analysis, iron ore prices in Odisha are expected to remain under pressure in the near term. However, a clearer market direction is likely to emerge after the upcoming OMC auction, which should offer fresh insights into buyer sentiment.
Leave a Reply