- Limited offers seen as ECs expire ahead of fiscal year-end
- NMDC’s latest auctions receive decent response
Domestic low-grade iron ore fines prices in Karnataka’s Bellary region were stable w-o-w, with BigMint’s weekly index for Fe 57% ore remaining unchanged at INR 2,700/tonne (t) ($31/t) ex-mines Bellary, excluding taxes.
Meanwhile, tags of high-grade (Fe 62%) ore also remained unchanged w-o-w. BigMint’s weekly index (Fe 62%) stood at INR 4,800/t ($56/t) ex-mines Bellary (including taxes).
Sluggish buying persisted due to weak demand, while material shortage arose as miners’ environmental clearances (ECs) have almost expired with the fiscal year-end approaching.
Sources stated that miners attempted to secure deals at lower prices in both e-auctions and direct sales, but their efforts were unsuccessful. As a result, the market remained quiet, with moderate transactions recorded. Notably, most miners were focused on moving older stocks rather than seeking new sales. This also indicates a temporary slowdown in the market as the fiscal year comes to an end.
Additionally, a source shared with BigMint that low-grade material, particularly Fe 57%, was in short supply in the merchant market, with miners unable to meet the demand for this grade.
A major buyer informed, “We haven’t purchased any material for a while, and miners are also running low as the fiscal year comes to its end”.
As reported earlier by BigMint, NMDC’s recent iron ore auction from its Kumaraswamy and Donimalai mines fetched decent response. The miner held an auction for 116,000 t of iron ore fines (Fe 57.54-62.39%) from its Kumaraswamy mines in Karnataka on 24 March. According to sources, the entire quantity was booked at INR 3,195-4,228/t ($37-49/t) against base prices of INR 3,185-4138/t ($37-48/t).
Another auction from the miner’s Donimalai mines witnessed booking of around 20,000 t lumps (10-40 mm, Fe 58%) at INR 4,274-4,294/t ($50/t) against the base price of INR 4,224/t ($49/t) and 28,000 t fines (Fe 58%) at INR 3,537-3,547/t ($41/t) against the base price of INR 3,537/t ($41/t). Prices for both the auctions are on ex-mines basis, including royalty, DMF, NMET.
Rationale
- One (1) trade was recorded in this publishing window via e-auction, and received 50% weightage.
- Eleven (11) offers and indicative prices were reported, and all were considered as T2 trades. Hence, this category was accorded 50% weightage.
Karnataka iron ore sales scenario (21-27 March 2025)
Outlook
Domestic low-grade iron ore prices are expected to remain volatile in the region, a source informed BigMint. Meanwhile, the market is closely watching the developments surrounding the mineral rights tax (MRT) bill. Trading activity is expected to pick up in the next fiscal year, as miners will resume full production following the renewal of their environmental clearances.
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