India: NMDC increases iron ore prices by INR 150-200/t for Jun'26

• NMDC production and sales improve in May
  
  
• Global iron ore price remains firm in May
  
  

India's largest merchant iron ore mining company, NMDC, has increased its list prices of iron ore CLO (calibrated lump ore) and fines on 6 June 2026, BigMint learnt from sources. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 6,150/tonne (t) ($65/t) and of iron ore fines (-10 mm, Fe 64%) at INR 4,700/t ($49.5/t). Prices are on FOR basis from the miner's Bacheli complex and exclude royalty, DMF, and NMEDT. Prices of all grades rose in the range of INR 50-100/t.

Factors supporting price hikes

• Production and sales rise in May: NMDC's monthly iron ore output touched 5.31 mnt in May, rising by 14% from 4.64 mnt in April. Iron ore sales increased by 10% to 4.04 mnt in May against 3.68 mnt in April.
  
  
• Rake dispatch increase m-o-m in May: NMDC dispatched 631 rakes from its Chhattisgarh mines in May 2026, equivalent to 2.43 million tonnes (mnt) of iron ore. The number of rakes dispatched rose around 9% compared to 631 rakes (2.43 mnt) in May, as per BigMint data. On a y-o-y basis, dispatches in May increased by 11% compared with 566 rakes in May 2025.
  
  
• Global iron ore prices remain firm: Iron ore fines (Fe 61%, Australia origin) prices inched up by $1.5/t m-o-m to $109/dmt CFR China in May, limiting the m-o-m price drop. Prices firmed up in the first half of May, though they moderated by the end of the month, driven by persistent pressure in the steel sector. China's ferrous segment weakened further as optimism surrounding the once-supportive steel export market continued to diminish. At the same time, the arrival of the rainy season in southern China clouded demand prospects, while growing inventories at steel mills exerted additional downward pressure on prices.
  
  

Market overview

• Indian steel prices fall m-o-m in May'26: Indian steel prices declined m-o-m in May 2026 across both long and flat steel segments, led by slow domestic demand. HRC prices dropped by 1% m-o-m to INR 58,456/t in May. Transaction activity remained muted throughout the month, with buyers showing no urgency to lift volumes beyond their immediate requirements. Moreover, persistent labour shortages and a notable slowdown in construction activity dampened buying interest.
  
  
• Sponge iron prices decrease m-o-m in May: Sponge PDRI prices in Raipur dropped by INR 1,050/t m-o-m to INR 25,350/t exw in May.
  
  
• Pellet prices drop sharply m-o-m: BigMint's domestic pellet index, PELLEX, fell by around INR 800/t m-o-m in May to INR 9,800/ t DAP Raipur. Pellet prices dropped amid a sharp fall in sponge iron and billet prices following pressure from the finished steel market. A few plants faced weak demand and selling pressure, leading them to turn to exports.
  
  
• Bids fall in OMC's May iron ore fines auction: In OMC's iron ore fines auction for 1.975 mnt (Fe 51-62%) on 20 May, 1.374 mnt (70%) were booked at INR 3,550-5,150/t. Only a couple of lots received premiums of INR 50-250/t over base prices, while the remaining lots were booked at the base prices. Meanwhile, weighted average bids dropped by INR 700/t m-o-m. However, OMC had cut base prices by INR 200-900/t m-o-m for the fines auction.
  
  
• Odisha fines prices drop m-o-m: BigMint's Odisha iron ore fines index (Fe 62%) dropped by INR 375/t m-o-m to INR 5,350/t in May 2026. Prices fellsharply in the second half of May amid pressure from the steel market and a decline in OMC auction bids in the May auction.