India: BigMint's Odisha iron ore index remain firm with bulk deals

• Miners' keep firm offers while steel prices decline
  
  
• Auctions fetch decent response from the eastern buyers
  
  

Iron ore prices in Odisha remained firm in the week ended 12 December, supported by bulk bookings concluded by major miners and a prompt response witnessed in iron ore auctions conducted by select producers. Market participants noted that large miners have been able to secure sizeable volumes in recent days, which has encouraged them to keep their offers unchanged despite mixed sentiments in the downstream steel market.

Price update

BigMint's Odisha iron ore fines (Fe 62%) index remained unchanged w-o-w at INR 5,700/t ($63/t) ex-mines on 13 December 2025. BigMint recorded deals for around 810,000 t of iron ore this week, concluded directly by steelmakers.

Meanwhile, around 75,000 t of iron ore were sold via auction this week by the major miners AMNS and SAIL, as per data reported by BigMint.

Market highlights

According to trade sources, miners are currently adopting a selective selling approach, accepting orders mainly from bulk buyers and long-standing customers. "Recent bulk bookings have given confidence to miners, so there is no immediate pressure to revise prices," a market participant said, adding that improved dispatch by large miners has helped in maintaining price stability in the region.

However, buyers continue to express concerns over the viability of procuring raw material at prevailing levels. Several sponge iron and pellet manufacturers highlighted that pellet and sponge iron prices are on a downward trajectory, while demand from the downstream steel segment remains weak. A buyer informed, "At current iron ore prices, margins are under stress. Pellet and sponge iron prices are falling, but raw material costs are not easing."

Steelmakers echoed similar concerns, stating that the mismatch between rising raw material costs and declining semi-finished and finished steel prices has severely impacted liquidity. A steel producer mentioned, "Raw material prices continue to remain elevated, while the semi-finished and downstream steel market is extremely poor. We are unable to sell material, but our input costs remain very high."

On the other hand, miners are keeping their offers at a similar level compared to last week. A miner stated, "We sold some decent volume to our regular buyers at the offered prices. Even some auctions were also received a firm response in the region conducted by the other miners. Now eyes on the upcoming OMC auction for further clarity for trades."

Meanwhile, market sources indicated that buyers are largely waiting for the upcoming Odisha Mining Corporation (OMC) auction scheduled for next week to procure bulk material. Participants expect that the auction could provide some price relief, depending on the base prices announced by the state-run miner. A trader said, "The next OMC auction will be a key indicator for price direction. Buyers are hopeful that base prices may be adjusted in line with current market conditions."

Factors affecting iron ore prices

Pellet prices fall w-o-w: Pellet (6-20 mm, Fe 62.5%) prices in Odisha's Barbil fell by INR 100/t ($1/t) w-o-w at INR 8,600/t ($95/t) loaded to wagon on 5 December. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur fell by INR 100/t ($1/t) to INR 9,650/t ($107/t) exw.

Sponge iron prices drop w-o-w: According to BigMint's assessment, sponge iron C-DRI (FeM 80%) prices in Rourkela fell by INR 650/t ($7/t) w-o-w to INR 23,600/t ($260/t) on 12 December.

Billet prices down w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela declined by INR 900/t ($10/t) w-o-w to INR 35,300/t ($390/t) on 12 December.

Rationale

• T1- Four (4) deals for Fe 62% fines were recorded in the publishing window, and three (3) were considered for price computation. These were 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. Eighteen (18) were taken into consideration and given 50% weightage. To check BigMint's iron ore assessment, pricing methodology, and specification document, click here.
  
  

Outlook

As per BigMint's analysis, Odisha iron ore prices are expected to gain a clearer direction next week following the OMC auction, as both miners and buyers closely watch the outcome for fresh market cues.