en.Wedoany.com Reported - Odisha Mining Corporation (OMC) has announced it will auction 2.54 million tons of iron ore on July 20, 2026, including 1.66 million tons of fines and 0.83 million tons of lumps. The miner will keep the base price for lumps unchanged in the upcoming auction, while reducing the base price for medium-grade fines by 50 rupees per ton month-on-month and raising the base price for high-grade fines by 100 rupees per ton.
Affected by restrictions imposed by the Directorate of Mines and Geology (DMG) on low-grade iron ore with iron content of 55-60%, OMC's supply in July decreased by approximately 0.62 million tons compared to the previous month. Market participants indicate that the main issue currently is not supply but dispatch speed. Following a recent notice from DMG to miners, many buyers are waiting for clearer policy information before committing to large-volume purchases.
It is understood that miners in Odisha plan to hold a meeting on July 6 to discuss issues arising from DMG's notice on iron ore dispatches based on average mine planning grades. The market is seeking further clarification and communicating with the government regarding the enforcement of the notice. DMG has issued show-cause notices to 65 iron ore mines in Odisha due to dispatch violations.
In terms of price adjustments, the slight reduction in medium-grade fines prices is linked to continued weakness in the sponge iron, finished steel, and pellet sectors, where sluggish procurement has dampened demand for raw materials. OMC has thus adopted a cautious pricing strategy while keeping lump prices unchanged amid relatively stable demand. Recent pellet export transactions in the eastern coast market may provide some support for auction prices, but some participants note that an oversupply of high-grade fines in the market could limit the extent of price increases.
The upcoming auction will be closely watched. Steelmakers and pellet producers are expected to accelerate stockpiling ahead of the monsoon season to secure raw material supplies before seasonal disruptions to mining and logistics. Auction participation and premium levels will serve as key indicators for gauging near-term demand sentiment in Odisha's iron ore market.
