- NMDC rolls over iron ore base price
- Donimalai’s 12 Feb auction fail to get higher bids
Domestic low-grade iron ore fines (Fe 57%) prices in Karnataka’s Bellary region witnessed a marginal drop this week. BigMint’s weekly index for low-grade fines (Fe 57%) decreased w-o-w by INR 50/t ($1/t) to stand at INR 2,850/tonne (t) ($33/t) ex-mines Bellary (excluding taxes).
Similarly, the Fe 62% fines index also fell to INR 4,500/t ($52/t) ex-mines Bellary, inclusive of taxes, a significant fall of INR 300/t ($3/t), w-o-w. Additionally, some offers were seen at higher levels, that is INR 4,800/t ($55/t). Despite ongoing supply concerns in the region, no deals were finalized for either of the offers.
However, the National Mineral Development Corporation (NMDC) has maintained iron ore prices, providing some support to domestic prices amid selective procurement. However, its recent iron ore auctions at Donimalai mines failed to attract higher bids. In the same line, an official source mentioned, “We maintained the Donimalai base price, while the bid price fell by approximately 130 in the recent auction.”
NMDC Karnataka’s list prices of iron ore fines (-10 mm, Fe 58%) and lumps (10-40 mm, Fe 58%) stood at INR 3,537/t ($41/t) and INR 4,224/t ($49/t), respectively, for the Donimalai auction on 12 February 2025. List prices remained unchanged from the previous revision on 30 January 2025. The auction witnessed bookings of 32,000 t: 20,000 t of fines (Fe 58%) were booked at INR 3,547/t ($41/t) against the base price of INR 3,537/t ($41/t), while 12,000 t of lumps (10-40 mm, Fe 58%) were booked at base price of INR 4,224/t ($49/t). Prices are on ex-mines basis, including royalty, DMF & NMET.
Additionally, reflecting on the recent auction results, a buyer based in Bellary commented, “Prices have declined due to limited trading activity in the region.”
The Karnataka Mineral Rights and Mineral Bearing Land Tax Bill 2024 remains a major concern for the domestic minerals industry. Its potential impact on mineral taxes, prices, and the overall economy has raised significant apprehension.
Rationale
- Two trades were recorded in this publishing window, out of which, only one was considered under T1 category and was accorded with 50% weightage.
- Ten (10) offers and indicative prices were reported, and all were considered as T2 trades, receiving 50% weightage.
Karnataka iron ore sales scenario (7-13 February, 2025)
Outlook
Domestic low-grade iron ore prices are expected to remain volatile amid the current market dynamics in the region. Meanwhile, the market is closely monitoring the situation around the MRT bill. Participants expect that certain clauses might be relaxed following yesterday’s meeting with the governor, which could potentially provide relief.
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