- Limited offerings amid heavy monsoon tighten iron ore availability
- Sharp price hike raises raw material cost pressure on mills
Odisha Mining Corporation (OMC) will auction 1.817 million tonnes (mnt) of iron ore on 19 September 2026, comprising 1.21 mnt of fines and 0.61 mnt of lumps. The miner has continued to keep the offered quantity limited this month amid heavy monsoon conditions, which have hampered mining operations. This has led to a surge of INR 750-1,200/t in lump prices across grades. Meanwhile, base prices for fines have been raised by INR 650-750/t across all grades.
Odisha’s total iron ore dispatches declined to a ten-month low of 12.3 mnt in Jul’26, while OMC’s dispatches fell to 3.1 mnt, the lowest since Oct’25, highlighting the ongoing supply-side constraints. Meanwhile, the miner has kept the quantity offered significantly low. Prior to this, in August, the material offered was reduced to 0.62 mnt following restrictions imposed by the Odisha DMG on dispatches of lower-grade Fe 55-60% iron ore.
A market participant commented that the recent unexpected hike may lead to a further immediate pass-through of higher raw material costs into semi-finished steel, potentially adding to volatility across the ferrous value chain. While material availability remained a concern, mills had expected an increase of around INR 350-500/t.
Moreover, many merchant sellers have consistently raised their offers for lower-grade fines by INR 150-200/t this week, an Odisha-based trader informed BigMint.
The move was also supported by the recent uptick in NMDC base prices by upto INR 250/t for lumps for September deliveries, creating a backdrop for the anticipated price spike.
A market participant commented, “Heavy monsoon in Joda and nearby regions in Odisha has reduced overall supply, while slow dispatches have created some concerns over availability.”
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