en.Wedoany.com Reported - India's largest commercial iron ore miner, NMDC (National Mineral Development Corporation), raised its iron ore list prices on June 6, 2026. According to BigMint, the company set the price of DR CLO (calibrated lump ore, 10-40 mm, Fe 67%) at INR 6,150/tonne (approximately $65/tonne), and iron ore fines (-10 mm, Fe 64%) at INR 4,700/tonne (approximately $49.5/tonne). The above prices are FOR Bacheli complex, excluding royalty, DMF, and NMEDT. The price increases for various grades range from INR 50 to 100 per tonne.
Factors supporting the price hike include: First, NMDC's production and sales both rose in May, with monthly iron ore output reaching 5.31 million tonnes, up 14% from 4.64 million tonnes in April; sales increased 10% month-on-month to 4.04 million tonnes, compared to 3.68 million tonnes in April. Second, train dispatches increased month-on-month in May, with NMDC dispatching 631 trains from its Chhattisgarh mines, corresponding to 2.43 million tonnes of iron ore, a month-on-month increase of about 9% and an 11% rise year-on-year compared to May 2025. Third, global iron ore prices remained firm, with the price of iron ore fines (Fe 61%, Australian origin) edging up $1.5/tonne month-on-month to $109/dry metric tonne CFR China in May, limiting the month-on-month decline. Prices strengthened in the first half of the month, despite easing towards the end, amid persistent pressures in the steel sector. China's ferrous sector weakened further as optimism surrounding previously supportive steel export markets continued to fade. The onset of the rainy season in southern China cast a shadow over demand prospects, while rising steel mill inventories exerted additional downward pressure on prices.
Looking at the overall market, Indian steel prices fell month-on-month in May 2026, with both long and flat steel products declining due to weak domestic demand. Hot-rolled coil prices fell 1% month-on-month to INR 58,456/tonne, with subdued trading activity throughout the month as buyers showed no urgency to procure beyond immediate needs. Persistent labor shortages and a significant slowdown in construction activity dampened buying interest. During the same period, sponge iron prices fell month-on-month, with the PDRI price in Raipur dropping by INR 1,050/tonne to INR 25,350/tonne (ex-works). Pellet prices declined sharply month-on-month, with BigMint's domestic pellet index PELLEX falling by about INR 800/tonne to INR 9,800/tonne (DAP Raipur). Under pressure from the finished steel market, significant declines in sponge iron and billet prices dragged pellet prices lower, with some mills turning to exports due to weak demand and sales pressure.
In Odisha, OMC (Odisha Mining Corporation) saw lower bids for iron ore fines in its May auction. In the auction of 1.975 million tonnes (Fe 51-62%) of fines on May 20, 1.374 million tonnes (70%) were sold at prices ranging from INR 3,550 to INR 5,150/tonne, with only a few lots fetching premiums of INR 50 to INR 250/tonne above the base price, while the rest were sold at the base price. The weighted average bid fell by INR 700/tonne month-on-month. OMC had previously reduced the base price for its fines auction by INR 200 to INR 900/tonne month-on-month. In May 2026, BigMint's Odisha iron ore fines index (Fe 62%) fell by INR 375/tonne month-on-month to INR 5,350/tonne, with prices declining sharply in the second half of the month due to steel market pressures and lower bids in the May OMC auction.
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