en.Wedoany.com Reported - This week, iron ore prices in Odisha, India, underwent a downward correction following the latest round of auctions by the state-owned mining company (OMC). On April 25, BigMint's assessed index for Odisha iron ore fines (Fe 62%) fell by 150 rupees/ton week-on-week to 5,600 rupees/ton (approximately $59/ton) on a minesite delivery basis. Around 0.73 million tons of transactions were recorded this week, primarily concluded between steel mills and private miners and traders.
In the fines auction held by OMC on April 18, 79% of the 1.972 million tons were sold at prices ranging from 3,750 to 5,700 rupees/ton, with the weighted average bid price down by 300 rupees/ton week-on-week. During the same period's lump ore auction, 85% of the 1.44 million tons were sold at prices ranging from 5,650 to 8,350 rupees/ton, with the weighted average bid price up by 250 rupees/ton week-on-week. Market participants noted that fines were weighed down by weak pellet prices and sluggish downstream demand, leading steel mills to be cautious with their bids. One market participant stated: "Considering the downstream market conditions, the current price levels are still too high. Most buyers participate in the auctions mainly to lock in necessary volumes, rather than chasing high prices." In contrast, lump ore saw firm demand due to profit advantages in the sponge iron sector.
Factors influencing iron ore prices also include the decline in pellet and sponge iron prices: pellets (Fe 62.5%) in the Barbil region fell by 200 rupees/ton week-on-week, while C-DRI in the Rourkela region fell by 200 rupees/ton. Offer adjustments by private miners were mixed, with most maintaining current levels. Market sources anticipate an increase in trading activity in early May, and iron ore prices are expected to stabilize around current levels in the near term, with the market focusing on signals of downstream recovery.
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