India: Karnataka iron ore prices remain unchanged w-o-w as market awaits miners’ fresh offers

• Miners yet to start production for current fiscal
• Market continues to face tight supply of Fe 57% ore

Domestic low-grade iron ore fines (Fe 57%) prices remained unchanged w-o-w in Karnataka’s Bellary region. BigMint’s weekly index for the same (Fe 57%) stood unchanged w-o-w at INR 2,700/tonne (t) ($31/t) ex-mines Bellary (excluding taxes).

Similarly, the Fe 62% fines index was also assessed stable w-o-w at INR 4,800/t ($56/t) ex-mines Bellary, including taxes. Additionally, some fresh offers were noted at higher levels, that is INR 5,050-5,100/t ($59/t). However, no deals were concluded at these offers, as the market awaited new offers from other miners as well for the current month.

A source informed BigMint that the merchant market continues to face a shortage of low-grade material, particularly Fe 57% ore, with miners struggling to meet the demand for this grade. Additionally, no major e-auctions were held last week, as miners are yet to commence production. Along the same lines, a Chitradurga-based miner told BigMint, “We have begun offering material but do not yet have the exact Fe 57% grade available. There have been no export shipments either.”

Another major miner from the region noted, “Fresh production from Karnataka’s mines has not commenced yet and is expected to start by the end of April. Current dispatches are primarily from previous inventories and for older bookings, which has kept price movements limited.”

Meanwhile, market participants were eagerly looking ahead to the iron ore price announcement from the National Mineral Development Corporation (NMDC) from its Donimalai mines, along with the outcome of other upcoming auctions, to gain further clarity. According to a source from the region, “We are holding our first auction of the fiscal year tomorrow, which is expected to provide some clarity.”

Rationale

• Zero (0) trades were recorded in this publishing window, so T1 trade received 0% weightage.
• Eighteen (18) offers and indicative prices were reported, of which fifteen (15) were considered as T2 trades. Hence, this category was accorded 100% weightage.

Karnataka iron ore sales scenario (4-10 April 2025)

Outlook

Domestic low-grade iron ore prices are likely to remain supported in the region, a source told BigMint. Meanwhile, the market awaits NMDC’s upcoming iron ore price revision. Attention also remains on the proposed mineral rights tax (MRT) bill, around which there continues to be a lack of clarity.