India: Iron ore prices in Karnataka remain stable w-o-w

• Trades yet to gain momentum
• Market still lacks clarity on MRT bill

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) ($32/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 at the start of the fiscal year, compounded by an ongoing material shortage as miners await the renewal of their nearly expired environmental clearances (ECs). As a result, the market remained quiet, with moderate transactions recorded.

A source informed BigMint that the shortage of low-grade material, particularly Fe 57% ore, persists in the merchant market, as miners struggle to meet the demand for this grade. Furthermore, no major e-auctions took place during the previous week.

A 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”.

The market remains focused on developments related to the Mineral Rights Tax (MRT) bill, which still lacks clarity. According to regional sources, the Governor has forwarded the bill to the President after receiving the necessary reports from the state government. A formal statement on the matter is anticipated in approximately six-seven months.

Rationale

• Zero (0) trade was recorded in this publishing window via e-auction, and received 0% weightage.
• Twelve (12) offers and indicative prices were reported, out of which 10 were considered as T2 trades. Hence, this category was accorded 100% weightage.

Outlook

Domestic low-grade iron ore prices are expected to remain supportede in the region, a source told BigMint. Meanwhile, the market eagerly awaits NMDC’s upcoming iron ore price revision.