India: BigMint Odisha iron ore fines index remains stable w-o-w despite slower dispatches

• Miners announce new offers this week
  
  
• DMG's stricter regulations on mineral dispatches
  
  

BigMint's Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 4,950/t ($52/t) ex-mines on 27 June 2026. The Odisha iron ore market remained under pressure this week as buying activity slowed following the decline in lump prices after the latest June OMC auction. Market sentiment also turned cautious after the DMG issued a notification restricting the dispatch of low-grade iron ore, prompting both miners and buyers to adopt a wait-and-watch approach.

As per the Odisha Directorate of Mines & Geology (DMG), stricter regulations on mineral dispatches have been introduced, under which no dispatch permissions shall be granted for ore grades falling below the benchmark specified in approved mining plans.

Auction and deals:

SAIL conducted auctions for 92,000 t of iron ore fines from its Bolani and Barsua mines on 24-26 Jun'26. About 80,000 t dump fines (Fe 59.27-61.5%) were sold at INR 3,710-4,930/t (ex-mines/ FOR rake loaded). Meanwhi8le, in its another auction on 25 Jun'26, 12,000 t of Barsua fresh fines (Fe 59.5%) were booked at INR 3,750/t (FOR loaded into rake basis). Prices included royalty, DMF, NMET, and additional premium.

BigMint recorded around 628,000 t iron ore deals ahead of the auction this week concluded by steelmakers via traders and miners.

Rationale

• T1- Four (4) deals for Fe 62% fines were recorded in the publishing window, and three (3) were considered for price computation. This was given 50% weightage for index calculation.
  
  
• T2 - BigMint received twenty (20) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Fourteen (14) were taken into consideration and given 50% weightage. To check BigMint's iron ore assessment, pricing methodology, and specification document, click here.
  
  

Market highlights:

Market participants reported that buyers largely fulfilled their immediate raw material requirements through the recent OMC auction, limiting fresh procurement from the spot market. A steelmaker said, "Most consumers have secured adequate volumes through the OMC auction and are now purchasing only need-based quantities of higher-grade ore from private miners at competitive prices."

Demand for different size grades also remained uneven. According to a buyer, 5-18 mm sized ore witnessed weaker demand due to higher fines generation during processing, whereas 10-40 mm material continued to attract relatively better interest owing to its superior cost effectiveness and improved productivity for steelmakers.

Private miners revised their offer prices downward following the correction in OMC auction prices. A miner commented, "We have adjusted our offers in line with the latest auction outcome and are currently awaiting counteroffers from buyers before concluding fresh transactions." Despite the cautious market, a couple of miners were heard concluding bulk fines deals for July delivery at revised offer levels, indicating selective buying interest for prompt requirements.

The newly introduced DMG notification remained a key discussion point across the market. Miners stated that dispatches of low-grade iron ore could become challenging as permissions are now linked to the average declared grade under approved mine planning. However, participants noted that operational guidelines and implementation procedures are yet to be clarified by the authorities.

A trader remarked, "The uncertainty surrounding the DMG notification has reduced buying confidence, with most participants preferring to monitor regulatory developments before taking large positions."

Factors affecting iron ore prices

Pellet prices down w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha's Barbil fell by INR 150/t w-o-w to INR 7,850/t ($84/t) loaded to wagon on 26 June. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur decreased by INR 50/t to INR 9,000/t ($95/t) exw.

Sponge iron down w-o-w: According to BigMint's assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela fell by INR 300/t ($3/t) w-o-w to INR 24,9o0/t ($264t) on 27 June.

Billet prices drop w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela inched up by INR 100/t ($1/t) w-o-w to INR 38,200/t ($405/t) on 27 June.

Rebar prices stable m-o-m: Rebar (12-25mm, IF Route, Fe 500, IS 1786) prices remained stable w-o-w at INR 41,800/t ($443/t) exw Rourkela on 27 June.

Outlook

As per BigMint's analysis, Odisha iron ore prices to remain under pressure in the near term, as cautious buying, sufficient inventories procured through the OMC auction, and regulatory uncertainty regarding low-grade ore dispatch continue to weigh on overall market sentiment.