en.Wedoany.com Reported - The BigMint-assessed Odisha iron ore fines (Fe 62%) index remained stable in the week ended June 6, at mine-gate price of INR 5,100/tonne ($53/tonne). Market activity turned cautious after the latest auction by the Odisha Mining Corporation (OMC), with both buyers and sellers assessing post-auction price levels.
Iron ore prices in Odisha remained largely stable this week, supported by steady trading activity and bulk purchases by some major miners ahead of the monsoon season. Market participants reported that approximately 1.419 million tonnes of iron ore were transacted through direct sales in the first week of June, while recent auctions by the Steel Authority of India Limited (SAIL) also received positive responses from buyers. Miners noted a slight improvement in iron ore demand as steelmakers and traders sought to secure inventories before the monsoon. A major miner pointed out active inquiries over the past week, with several bulk deals concluded at prevailing market prices.
However, buyer sentiment remained cautious due to persistent weakness in the downstream steel market. A market buyer highlighted that tight liquidity conditions, coupled with uncertainty over tradable iron ore price levels, limited procurement activity. Another steelmaker commented that weak finished steel prices and continued declines in global iron ore fines prices made purchasing decisions increasingly difficult. The manufacturer added that the market direction remains unclear, with most buyers still assessing demand before committing to large volumes. Another buyer noted that some steel mills had completed pre-monsoon stocking and were now in a wait-and-watch mode, making fresh buying interest selective. Meanwhile, large integrated steel producers remained active in the market, evaluating opportunities to procure raw materials at competitive prices. Market sources indicated that despite participation from large mills, overall steel demand had not improved significantly, with pre-monsoon steel sales still below expectations.
In index compilation, BigMint recorded eight transactions of Fe 62% fines during the publishing window, of which six were included in price calculation, accounting for a 50% weight in the index; it also received seventeen offers and indicative prices under the T2 category, of which eleven were adopted, also accounting for a 50% weight.
Among factors influencing iron ore prices, pellet prices showed divergence: pellet prices in Barbil, Odisha, rose by INR 100/tonne week-on-week to INR 8,100/tonne ($84/tonne) on a loading basis as of June 5; while pellet prices in Durgapur fell by INR 50/tonne week-on-week to INR 8,700/tonne ($91/tonne) on an ex-plant basis. In sponge iron, C-DRI (FeM 80%) prices in Rourkela declined by INR 500/tonne week-on-week to INR 25,500/tonne ($269/tonne). In billets, billet (100*100 mm) prices in Rourkela fell by INR 600/tonne week-on-week to INR 38,500/tonne ($405/tonne).
Looking ahead, BigMint analysis suggests that Odisha iron ore prices are expected to remain largely stable in the near term. Some market participants anticipate further price corrections following the upcoming OMC auction scheduled for mid-June. The auction results are expected to provide clearer price signals and influence market sentiment in the coming weeks.
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