India: BigMint's Odisha iron ore index rises by INR 100/t w-o-w post OMC auction

• Bids at OMC auction rise m-o-m amid material shortages
  
  
• Some miners may lift offers by INR 200-300/t in near term
  
  

Iron ore prices in Odisha strengthened by INR 100-200/t immediately after the latest Odisha Mining Corporation (OMC) auction, supported by firm bidding activity and limited material availability in the spot market. However, most miners are yet to announce revised offers for fresh trades, keeping buyers in a wait-and-watch mode.

Price update

BigMint's Odisha iron ore fines (Fe 62%) index increased by INR 100/tonne (t) w-o-w to INR 5,600/t ($63/t) ex-mines on 22 November 2025. BigMint recorded deals for around 100,000 t of iron ore this week, concluded directly by steelmakers.

Notably, some private miners revoked their iron ore offers this week due to the OMC auction and may announce fresh offers in the next week for the upcoming trades.

In OMCs auction on 19 November, 1 mnt of iron ore lumps (Fe 60-65%) were booked at INR 6,000-8,750/t, with premiums of INR 700-1,700/t and select lots touching INR 2,000-2,700/t, pushing weighted average bids up by INR 250/t m-o-m despite an INR 200/t cut in base prices. Similarly, in the fines auction for 1.939 mnt (Fe 51-62%), nearly 99% of the material was booked at INR 2,500-5,900/t, attracting premiums of INR 50-1,000/t and a marginal INR 200/t m-o-m rise in weighted average bids, supported by limited supply and minimal offers from private miners.

Market highlights

According to market participants, the OMC auction witnessed sharply higher bids compared to last month, despite an increase in offered volumes. A trader remarked, "Even with higher availability, bidders were aggressive this time. Many steelmakers secured substantial volumes as they expect supply tightness ahead."

Bulk bookings by major buyers in the auction have temporarily slowed fresh market inquiries, with most steel producers assessing their short-term procurement needs before committing to new deals. A steelmaker informed BigMint, "We have booked enough material in the auction so as to fulfil our requirements. However, sponge iron and billet prices are slightly on the weaker side, which may keep fresh bookings under pressure."

Market sentiment was also influenced by the ongoing material shortage and steady demand from steelmakers, both of which supported higher price expectations. Private miners offered limited high-grade ore in recent weeks, further tightening supply. A miner commented, "High-grade ore availability is very tight. Demand is steady, so we may see another round of price hikes once new offers are released."

Market sources expect some miners to increase their offers by INR 200-300/t in the coming days, driven by strong auction cues and robust demand for high-grade ore. However, declining prices in sponge iron and other downstream steel segments are keeping steelmakers cautious about aggressive procurement.

Factors affecting iron ore prices

Pellet prices rise w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha's Barbil increased by INR 150/t ($2/t) w-o-w to INR 8,700/t ($98/t) loaded to wagon. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur surged by INR 400/t ($4.5/t) to INR 9,950/t ($112/t) exw on 21 November.

Sponge iron prices rise w-o-w: According to BigMint's assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela increased by INR 450/t ($5/t) w-o-w to INR 24,200/t ($273/t) on 22 November.

Billet prices up w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela climbed up by INR 150/t ($2/t) w-o-w to INR 35,200/t ($397/t) today.

Rationale

• T1- Five (5) deals for Fe 62% fines were recorded in the publishing window and five (5) considered for price computation. These were given 50% weightage for index calculation.
  
  
• T2 - BigMint received nineteen (19) offers and indicative prices under the T2 category (offers, indicative, and bids) in this publishing window. Seventeen (17) were taken into consideration and given 50% weightage. To check BigMint's iron ore assessment, pricing methodology, and specification document, click here.
  
  

Outlook

BigMint's analysis suggests that Odishas iron ore market is expected to remain firm in the near term, supported by tight supply and solid demand. Buyers are also closely tracking steel price movements to determine future procurement strategies.