- Some high-grade deals conclude this week at offer prices
- OMC to announce base prices and quantities in next couple of days
Odisha iron ore prices remained firm this week, with a limited number of trades concluded at prevailing offers. Market participants are now closely watching the upcoming Odisha Mining Corporation (OMC) auction, scheduled for 19 September, which is expected to set the tone for the market and provide better price clarity in the near term.
Price update
BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,500/tonne (t) ($62.5/t) ex-mines on 13 September 2025. BigMint recorded deals for around 380,000 t in Odisha, concluded by direct sales. The market concluded Fe62% fines deals at the level of INR 5,500-5,600/t ex-mines this week, while some low-grade deals were also heard.
Miners predominantly sold to regular buyers at offered prices. Dispatch improved this week following a slowdown in the monsoon, and sources reported that iron ore production and dispatch would return to normal in the coming days.
Market highlights
A trader said, “The upcoming OMC auction is likely to witness active participation from steelmakers looking to secure bulk volumes. We expect bids to remain strong, given the procurement requirements of steel producers.”
However, the current market scenario reflects mixed sentiment. A section of traders who procured ore at higher levels earlier are reportedly struggling to liquidate stocks at ongoing offers. A market participant added, “Many traders are sitting on material purchased at elevated prices. With buyers adopting a wait-and-watch stance, they are finding it difficult to move inventory.”
On the demand side, a few bulk procurement tenders from steelmakers have been heard, which, once finalised, could provide further support to prices. Meanwhile, some miners have adopted an aggressive selling strategy for October deliveries, aiming to push volumes before any potential correction.
Buyers, on the other hand, remain cautious. Procurement activity has slowed ahead of the OMC auction, with uncertainty surrounding the government’s possible imposition of export duty in October on low-grade fines adding to the cautious sentiment.
A steel producer informed, “If the duty is imposed, domestic supply could improve, potentially exerting pressure on prices. However, these are only rumours as no official confirmation from the government end till now.”
Factors affecting iron ore prices
Pellet sees mixed trend w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha’s Barbil rose by INR 100/t ($1/t) w-o-w to INR 8,700/t ($99/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur remained stable w-o-w at INR 9,350/t ($106/t) exw on 12 September
Sponge iron prices rangebound w-o-w: According to BigMint’s assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela remained largely stable w-o-w at INR 26,200/t ($297/t) on 13 September.
Billet prices down w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela fell by INR 200/t ($2/t) w-o-w to INR 36,200/t ($410/t) today.
Rationale
- T1- Four (4) deals for Fe62% fines were recorded in the publishing window, and all were considered for price computation. These were given 50% weightage for 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
According to BigMint’s analysis, Odisha iron ore prices are expected to remain stable, as the OMC auction is likely to attract strong bids from steel producers looking for large quantities. The base prices and the quantity available will be announced by OMC at the beginning of next week.
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