- NMDC hikes iron ore prices by up to INR 400/t ($5/t)
- NMDC’s 6 May iron ore auction receives active response
Karnataka’s domestic low-grade iron ore fines (Fe 57%) prices remained unchanged this week in Bellary. BigMint’s weekly index for low-grade fines stood at INR 2,700/tonne (t) ($32/t) ex-mines Bellary (excluding taxes), stable w-o-w.
The Fe 62% fines index was assessed at INR 5,100/t ($60/t) ex-mines Bellary, including taxes, reflecting a w-o-w increase of INR 150/t ($2/t). Although some offers were heard at higher levels of INR 5,300–5,500/t ($62–64/t) due to limited availability of high-grade ore, no transactions were concluded at these elevated prices, as buyers were inclined to purchase at BigMint’s assessed level of INR 5,100/t ($60/t).
Notably, the National Mineral Development Corporation (NMDC), Karnataka, announced a price hike for iron ore auction held on 6 May 2025. This, coupled with ongoing material shortages, supported domestic price levels. According to a miner, “The market remains highly volatile. We have not made any offers since the last week of April, and even those offers failed to draw interest”.
Post-revision, fines (-10 mm, Fe 58%) stood at INR 3,932/t ($46/t), up by INR 395/t ($5/t), while lumps (10-40 mm, Fe 58%) were at INR 4,603/t ($54/t), up by INR 379/t ($4/t) when compared to the previous revision on 30 April. Prices include royalty, DMF, and NMET.
Meanwhile, the miner’s iron ore auction from Donimalai mines on 6 May received an active response. According to sources, the entire quantity of 16,000 t of lumps (10-40, Fe 58%) and 32,000 t of fines (Fe 58%) were booked at the base prices of INR 4,603/t ($54) and INR 3,932/t ($46/t), respectively. Prices are on ex-mines basis and include royalty, DMF, and NMET.
Additionally, several miners stayed out of the market as they await renewal of their environmental clearances (ECs) for the current fiscal year. The limited volumes sold during the week primarily came from previously stockpiled material. A Bellary-based miner told BigMint, “Our EC is still not renewed, so we are not active in the market.”
Another source from the region said, “No trades were reported during the week. Apart from NMDC, no other sellers participated in e-auctions, largely due to a lack of available material.”
Rationale:
- Zero (0) trades were recorded for Fe 57% in this publishing window, so T1 trade received 0% weightage.
- Fourteen (14) offers and indicative prices were reported, out of which ten (10) were considered as T2 trades. These were accorded 100% weightage.
Karnataka iron ore sales scenario (2-8 May 2025)
Outlook
Domestic low-grade iron ore prices in Karnataka are likely to remain firm in the near term, supported by material shortages and NMDC’s recent price hike. However, trading activity may face pressure with the expected arrival of imported cargoes and limited offers from miners in the merchant market.
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