- Miners keep offers firm amid tight supply
- Buyers wait for OMC auction for price clarity
Iron ore prices in the Odisha region witnessed an uptick this week as traders and steelmakers geared up for the upcoming Odisha Mining Corporation (OMC) auction, likely to be scheduled on 19 November. Limited availability of fresh material in the spot market pushed prices higher, with a few trades being concluded at elevated levels.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index increased by INR 100/tonne (t) w-o-w to INR 5,500/t ($62/t) ex-mines on 15 November 2025. Some trades for Fe 62% fines were concluded at INR 5,500-5,600/t amid a shortage of higher-grade material and a lack of offers. BigMint recorded deals for around 375,000 t of iron ore this week, concluded directly by steelmakers.
In the AM/NS Sagasahi iron ore auction on 11 November, the entire 48,000-t lumps offered (5-18mm, Fe 58.5-62.5%) were booked at INR 6,425-7,600/t and 48,000-t fines (Fe 53.5-56.5%) at INR 2,950-3,800/t. Some lots received premiums of INR 50-100/t.
Market highlights
Market participants noted that improved sentiment in the sponge iron and downstream steel markets offered marginal support, but the primary driver remained tightening supply. Several miners reportedly restricted offers and accepted only selective, smaller orders, effectively holding back bulk volumes. This supply discipline contributed to the firmness in iron ore offers from private miners.
A steelmaker said, “Currently, offers from private miners are too high and not workable for large-volume sourcing. Most buyers are waiting for the OMC auction to get a clearer price direction.”
Similarly, a trader added, “Material availability in the open market has reduced amid overbooking by miners. Miners are cautious and only selling material to selective buyers.”
Meanwhile, the export market slowed down further in recent days, as exporters scaled back purchases of low-grade ore amid weaker seaborne demand. Softer export appetite exerted additional pressure on domestic sourcing of low-grade fines.
Pellet prices, however, have not seen a sharp increase yet, despite the firmness in iron ore. Buyers believe pellet prices may adjust only after the OMC auction results.
A miner informed BigMint, “Prices may experience corrections once OMC’s bid prices come out. Buyers are avoiding aggressive procurement until there is clarity.”
Factors affecting iron ore prices
Pellet prices stable w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil remained stable w-o-w at INR 8,550/t ($96/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur were firm w-o-w at INR 9,550/t ($107/t) exw on 14 November.
Sponge iron prices rise w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela increased by INR 450/t ($5/t) w-o-w to INR 24,650/t ($278/t) on 15 November.
Billet prices surge w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela climbed up by INR 750/t ($8/t) w-o-w to INR 35,050/t ($395/t) today.
Rationale
- T1- Three (3) deals for Fe 62% fines were recorded in the publishing window and considered for price computation. These were given 50% weightage in index calculation.
- T2 – BigMint received eighteen (18) 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
BigMint’s analysis suggests that due to supply constraints and the market’s wait-and-watch mode, Odisha’s iron ore market may see fluctuations and possible price corrections in the week ahead.
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