India: OMC iron ore fines auction gets strong response, bids inch up m-o-m

• Bids received for 1.41 mnt out of 1.44 mnt offered
• Fines bids rise INR 50-350/t m-o-m upon lower base prices

The Odisha Mining Corporation (OMC) received a strong response to its iron ore fines auction held on 22 October, with bids received for 1.41 million tonnes (mnt) out of 1.44 mnt offered. Only a few lots of low-grade fines remained unsold. Bids increased by INR 50-350/tonne (t) m-o-m, despite a reduction in base prices, supported by supply constraints following monsoon-related disruptions and action against illegal mining in Odisha. However, lower pellet prices capped the upside in bidding.

Auction highlights

OMC’s fines auction recorded bids for around 98% of the total volume offered. Bids were INR 200-450/t above the set base prices, indicating improved buyer acceptance despite lower reserve levels.

For the fines category, OMC reduced base prices by around INR 150/t from the previous month’s levels. For calibrated lump ore, base prices were lowered by INR 50-450/t, depending on the grade and source of material.

Supply constraints support bids

India’s iron ore production fell to a year-low in August 2026 amid monsoon-related disruptions and a crackdown on illegal mining in Odisha. The state’s iron ore dispatches declined to 11.1 mnt, their lowest level in more than a year.

OMC’s dispatches also fell to 2.4 mnt in August, the lowest monthly volume since July 2025. The decline in regional availability may have supported competition for auctioned material, although the extent of its direct impact on individual bids remains unquantified.

Pellet prices cap upside

Despite improved bidding, the increase in iron ore fines prices remained limited by a recent reduction in pellet prices. Lower pellet realisations can weaken the incentive for pellet producers to pay higher prices for fines, constraining further increases in raw material bids. BigMint’s assessment for Durgapur pellets fell by INR 200/t m-o-m so far in Oct/

Outlook

Further price direction is likely to depend on iron ore availability following the monsoon season, OMC’s subsequent auction volumes and changes in pellet prices. The extent of any recovery in mining and dispatch activity will be important in determining whether the stronger auction response translates into sustained price gains.