India: OMC cuts iron ore auction base prices by over INR 1,000/t ($10/t) for May'26

• Base price of fines cut by INR 200-900/t, lumps by INR 150-1,100/t
  
  
• Miner offers 1.3 mnt lumps and 1.975 mnt fines in auction
  
  

Major merchant iron ore miner, Odisha Mining Corporation (OMC), has reduced the base prices of iron ore fines and lumps for its upcoming auction scheduled on 20 May 2026, BigMint learnt from sources. The miner has lowered the base price of iron ore fines by around INR 200-900/t, while lump ore base prices have been reduced by nearly INR 150-1,100/t across grades, compared to the previous auction. The miner has offered 1.975 mnt fines and 1.3 mnt lumps for the auction.

The downward revision in base prices comes amid subdued domestic market sentiment, cautious buying activity from steelmakers, and restricted participation from traders in recent auctions. Market participants expect the price correction to support booking volumes in the upcoming auction, although aggressive bidding may remain limited due to pressure on finished steel margins and weak trading sentiment.

Market overview:

Odisha iron ore prices decline INR 200/t m-om: BigMint's Odisha iron ore fines index (Fe 62%) witnessed a correction of INR 200/t amid subdued buying activity from steel mills and traders. Buyers remained cautious amid weak finished steel demand and adequate inventory at plants.

Pellet prices under pressure: BigMint's pellet (6-20 mm, Fe 62.5%) assessment FOR Barbil fell sharply by INR 600/t to INR 8,400/t m-o-m in May against INR 9,000/t in April. Current demand is very weak, with sellers actively looking to divert volumes to neighbouring markets or for export opportunities amid better realisations.

Sponge iron prices fall INR 1,500/t m-o-m: Domestic sponge iron (CDRI) prices in Rourkela declined by around INR 1,450/t in May against April on sluggish demand from secondary steelmakers and continued pressure on billet prices. Weak finished steel realisations and cautious raw material procurement weighed on market sentiment, resulting in restricted participation in iron ore auctions.

Outlook

Market participants expect bidding sentiment in OMC's auction to remain measured despite the INR 200/t cut in base prices. While the reduction may support participation, overall premiums are likely to depend on near-term steel demand recovery and movement in domestic finished steel prices.