- Pellet, sponge iron, billet prices rise w-o-w
- High-grade fines in short supply in Odisha
Odisha’s iron ore market remained well-supported this week amid tight supply caused by disrupted mining operations and logistics hurdles due to heavy monsoon rains. Market participants noted that production has been severely impacted across several mines, and dispatches have slowed down further, leading to limited material availability in the region.
Prices saw an uptick of INR 100-200/t w-o-w, with only a few trades concluded. Bulk orders remained absent in the market.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index rose by INR 150/t ($2/t) w-o-w to INR 5,000/tonne (t) ($58/t) ex-mines on 12 July 2025. Notably, deals for around 400,000 t of iron ore (fines and lumps) were recorded by BigMint in Odisha, concluded by merchant sellers with larger stocks of mid-grade fines material. Notably, 750,000 t were traded last week, indicating a sharp drop this week.
High-grade fines were offered at INR 5,000-5,500/t ($58-64/t) ex-mines, amid limited availability. Meanwhile, buyers were cautious regarding trades amid ongoing transportation disruptions due to heavy rain.
Market update
A prominent miner stated, “We are not accepting bulk orders currently. The continuous rainfall has made operations difficult, and only a few miners are in a position to offer high-grade material, which is being sold at a premium.” Some miners have even withheld their offers due to exhausted inventories, further tightening the market.
The shortage has pushed buyers to the market, especially those who failed to restock in the pre-monsoon window. A buyer commented, “We did not procure bulk quantities earlier, expecting a price correction in July, but the situation has turned opposite due to the material crunch.”
Market participants expect this tightness to reflect in the upcoming Odisha Mining Corporation (OMC) auction, scheduled for 19 July. Expectations are high that prices will see an upward revision during the auction as supply-side constraints persist.
Adding to the bullish sentiment, renewed activity in the export market has supported offers for lower-grade fines. A slight uptick in prices of pellets, sponge iron, and other semi-finished products has given further room for miners to raise their offers.
Overall, the market expects improved trade volumes and a firm price outlook in the near term, contingent on the upcoming OMC auction outcome.
Factors affecting iron ore prices
Pellet offers climb w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil rose by INR 150/t ($2/t) w-o-w to INR 8,050/t ($94/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur rose by INR 400/t ($5/t) w-o-w to INR 9,400/t ($110/t) exw on 11 July.
Sponge iron prices up w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela rose by INR 700/t ($8/t) w-o-w to INR 24,800/t ($289/t) on 12 July. Meanwhile, steel billet (100*100 mm) offers in Rourkela increased by INR 300/t ($5/t) w-o-w to INR 36,600/t ($426/t) today.
Rationale
- T1- Four (4) deals for Fe62% fines were recorded in the publishing window, and three (3) 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 gain clarity on future trends next week, as OMC is likely to announce base prices for July auction. Based on current market dynamics, prices are likely to move northward due to lower production and supportive demand for raw materials.
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