India: OMC hikes high-grade iron ore fines floor prices by INR 100/t m-o-m for Jul’26 auction

• Offered quantity dropped by 0.6 mnt amid slow dispatch
• Auction scheduled on 20 Jul, lumps base price same

Odisha Mining Corporation (OMC) will auction 2.54 million tonnes (mnt) of iron ore on 20 July 2026, comprising 1.66 mnt of fines and 0.83 mnt of lumps. While the miner has kept lump ore floor prices unchanged, it has reduced fines floor prices by INR 50/t m-o-m for mid grade fines while higher-grade base prices increased by INR 100/t for the upcoming auction.

Meanwhile, the miner reduced the offered quantity by around 0.62 mnt in July against last month, following the restrictions on lower-grade Fe 55-60% iron ore by DMG Odisha.

The recent pellet export deals from the east coast market may support the prices in the auction. However, the participant informed that due to the excessive supply of high grade fines in market the cap on price hike may be limited.

Another market participant commented, “The biggest concern at the moment is not availability but dispatch. Following the recent DMG circular issued to miners, many buyers are waiting for more clarity before committing to large-volume purchases.”

Meanwhile, a few sources said Odisha miners scheduled a meeting on 6 July to discuss issues arising after the recent Directorate of Mines and Geology (DMG) notification regarding iron ore dispatches based on the average mine planning grade. The market is understood to be seeking further clarification and discussions with the government on the implementation of the notification. The DMG issued a show-cause notice to 65 iron ore mines in Odisha for irregularities in dispatch.

The marginal reduction in mid-grade fines prices follows persistent weakness in the sponge iron, finished steel and pellet segments, where sluggish procurement has curtailed raw material demand. Consequently, OMC has adopted a cautious pricing strategy, while retaining lump prices amid relatively stable demand.

The upcoming auction will be closely watched as steelmakers and pellet producers are expected to step up pre-monsoon restocking to secure feedstock before seasonal disruptions to mining and logistics. Auction participation and bid premiums will provide a key gauge of near-term demand sentiment in Odisha’s iron ore market.