India: Odisha iron ore prices falls by INR 150/t w-o-w post OMC auction

• Around 2.8 mnt iron ore received bids in the OMC auction
  
  
• Fines bids drop amid the pressure from pellet prices
  
  

Iron ore prices in the Odisha region witnessed a downward correction this week following the latest OMC auction, as subdued downstream sentiment weighed on fines demand. While the auction enabled several buyers to secure bulk volumes, overall bidding activity remained cautious, particularly for fines, amid persistent weakness in pellet prices and limited improvement in the semi-finished steel segment.

Price update

BigMint's Odisha iron ore fines (Fe 62%) index fell by INR 150/t ($2/t) w-o-w to INR 5,600/t ($59/t) ex-mines on Saturday (25 April). It recorded deals for around 730,000 t this week, concluded directly by steelmakers with private miners and traders.

A few deals were concluded in the iron ore auction via SAIL this week. Around 40,000 t of iron ore was sold in auctions by the miner this week.

In OMC's iron ore fines auction for 1.972 mnt (Fe 51-62%) on 18 Apr'26, 1.575 mnt (79%) was booked at INR 3,750-5,700/t. Some lots received premiums of INR 50-600/t over base prices, with INR 175/t being the average premium. However, weighted average bids dropped by INR 300/t m-o-m. Base prices of fines were increased by INR 250-300/t m-o-m for a few lots in the auction.

In OMC's auction for 1.44 mnt of iron ore lumps (Fe 60-65%) on 18 Apr'26, 1.23 mnt (85%) were booked at INR 5,650-8,350/t, with average premiums of INR 600/t over base prices. Weighted average bids rose by INR 250/t m-o-m. Earlier, OMC had raised base prices of lumps by INR 500/t. The auction recorded strong participation due to expectations of improved finished steel demand in Apr'26, following the start of the new fiscal year.

Market highlights

Market participants noted that fines prices came under pressure as steelmakers refrained from aggressive bidding. A market participant commented, "Current price levels are still on the higher side, considering the downstream market conditions. Most buyers participated in the auction primarily to secure essential volumes rather than chase higher bids." Additionally, restricted participation from traders further limited competitive intensity during the auction.

In contrast, lumps witnessed a notable uptick in bids, supported by improving demand trends over the past few weeks. The relative margin advantage in the sponge iron segment, particularly sponge CDRI, compared to pellet-based DRI (PDRI), has sustained demand for lumps.

A sponge iron producer noted, "Lumps are currently offering better realizations for sponge iron producersand this has kept demand firm despite overall market uncertainty."

Meanwhile, Odisha-based private miners revised their offers during the week, with a mixed trend observed across categories. While most miners maintained their offer levels, a few opted to reduce iron ore fines prices in response to softer demand. Some fresh deals were also reported in the market, indicating continued, albeit cautious, buying interest.

Market sources expect increased activity in early May, as previously concluded deals are lifted and buyers reassess their inventory positions. A miner said, "Most buyers are currently in a wait-and-watch mode after securing bulk volumes through the OMC auction. However, we anticipate fresh bulk transactions in the first week of May."

Additionally, miners who have not yet revised their prices are likely to announce new offers in the coming days, which could provide further direction to the market.

Factors affecting iron ore prices

Pellet prices show down trend: Pellet (6-20 mm, Fe 62.5%) prices in Odisha's Barbil dropped by INR 200/t w-o-w to INR 8,800/t ($93/t) loaded to wagon on 24 April. Pellet (Fe 62.5%, 6-20 mm) prices in Durgapur fell by INR 400/t to INR 9,700/t ($103/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 200/t ($2/t) w-o-w to INR 27,800/t ($295/t) on 25 April.

Billet prices stable w-o-w: Meanwhile, steel billet (100*100 mm) prices in Rourkela remained stable w-o-w at INR 41,100/t ($436/t) on 25 April.

Rationale

• T1- Eight (8) deals for Fe 62% fines were recorded in the publishing window, and five (5) was 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. Fifteen (15) 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 market inputs and BigMint analysis, iron ore prices are expected to remain stable at current levels in the near term, with trading activity continuing steadily as market participants navigate demand-supply dynamics and monitor downstream recovery signals.