en.Wedoany.com Reported - India's iron ore fines market continues to face pressure, with low-price bids dominating transactions. Iron ore fines prices in Odisha remained stable week-on-week. Weak buying interest and subdued sentiment in the ferrous value chain dragged down central region iron ore fines prices. Although sellers attempted to raise prices, persistent buyer resistance suppressed any room for adjustment.
According to BigMint's latest bi-weekly assessment, Fe 62% iron ore fines ex-works price stood at INR 4,500/tonne ($48/tonne), down INR 200/tonne ($2/tonne) from June 20. Offers for Fe 63% grade fines were in the range of INR 5,000-5,200/tonne ($53-55/tonne) ex-works. The Fe 62% fines price has fallen to its lowest level in nearly a year, with a similar level last seen in July 2025.
The weakness in fines is primarily due to subdued demand from pellet producers and a bearish outlook in the Odisha iron ore market. Weak fundamentals in the pellet sector significantly impacted procurement activities, as consumers were unwilling to accept higher offers amid expectations of further price corrections for raw materials. The bid-ask spread has narrowed recently, as sellers were more willing to align offers with buyer expectations to maintain inventory turnover and cash flow.
Market sources said that most of the previously accumulated orders have been shipped, easing logistical pressure on suppliers. Although offers for new inquiries were slightly raised, persistent buyer resistance forced sellers to conclude deals at lower levels. The usual pre-monsoon restocking activity did not occur this year, with both buyers and sellers adopting a wait-and-see approach, resulting in limited transaction volumes and insufficient market momentum.
A seller from Jabalpur told BigMint that the current market is unfavorable for fines producers, with the continued weakness in pellet prices being a major concern. Any further decline in pellet prices would add additional pressure on fines prices. Buyers are already seeking lower prices for future orders, and overall market sentiment remains cautious.
During this publication window, three transactions were recorded, of which two were considered, accounting for a 50% weight. A total of nine offers and indicative prices were received, of which seven were considered as T2 transactions, accounting for a 50% weight.
On June 23, BigMint's bi-weekly domestic pellet index PELLEX (Fe 63%, Raipur designated destination delivery price) stood at INR 9,100/tonne ($96/tonne). Although pellet producers in the Raipur cluster raised offers by INR 200/tonne to INR 8,900-9,000/tonne ($94-95/tonne) ex-works on June 22, driven by improved buying interest at low prices ahead of the monsoon season, overall pellet prices still fell by INR 200/tonne week-on-week. Market participants attributed the brief firmness in offers to aggressive booking after recent price corrections. However, weak demand from sponge iron producers and weak fundamentals in the downstream steel market continued to weigh on overall pellet market sentiment.
On June 20, 2026, BigMint's Odisha iron ore fines (Fe 62%) index remained flat week-on-week at INR 4,950/tonne ($52/tonne) mine-gate price. Spot prices for various grades in Odisha fell by INR 100-200/tonne over the past week, dragged down by weak downstream steel demand and subdued buying interest from steel mills. Limited procurement activities in the market were primarily driven by seasonal inventory replenishment, as steel mills increased stocks ahead of the monsoon season to prepare for potential disruptions in mining and transportation. Overall sentiment remained cautious, with weak fundamentals in the steel market continuing to exert pressure on iron ore prices.
In the short term, iron ore fines prices are expected to remain under pressure, with potential for further downside if demand from pellet producers and steel mills does not improve. Some sellers currently in negotiations may continue to seek new orders, while most market participants are focused on executing and shipping existing contracts. Without substantial improvement in downstream demand, procurement activities are expected to remain cautious, and fines prices are likely to fluctuate within a range with a weak bias in the coming weeks.
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