- Active pre-monsoon restocking supports offers
- NMDC Donimalai announces marginal price reduction
Domestic low-grade iron ore fines (Fe 57%) prices remained firm this week in Karnataka’s Bellary region. BigMint’s weekly index for the same (Fe 57%) stood unchanged w-o-w at INR 3,100/tonne (t) ($36/t) ex-mines Bellary (excluding taxes). Although one deal was reportedly concluded at a comparatively lower offer, the majority of the market held firm at levels mentioned above.
Similarly, the Fe 62% fines index was assessed at INR 5,100/t ($59/t) ex-mines Bellary, including taxes. Additionally, some players were seen quoting higher offers in the range of INR 5,250-5,400/t ($61-63/t), anticipating price acceptance ahead of the monsoons. However, no deals were concluded at these levels, as buyers remained hesitant to accept the hike.
As previously reported by BigMint, the National Mineral Development Corporation (NMDC) in Karnataka re-entered the merchant market with low-grade iron ore fines (Fe 57%) via e-auction, following a prolonged gap. This week, the miner continued its offerings from the Donimalai mines, but at slightly reduced prices, following the price cut announced by NMDC Chhattisgarh (CG) on 4 June 2025.
NMDC, reduced its list prices of iron ore calibrated lump ore (CLO) and fines on 4 June 2025, BigMint learnt from sources. The miner fixed prices of DR-CLO (10-40 mm, Fe 67%) at INR 7,050/t ($82/t) and of iron ore fines (-10 mm, Fe 64%) at INR 5,350/t ($62/t), a decrease of INR 150-160/t ($2/t). Prices are on FOR basis from its Bacheli complex and include royalty, DMF, and NMET. Prices were reduced, as India’s steel prices hit a two-month low, domestic pellet tags dropped sharply, the Odisha Mining Corporation (OMC) iron ore fines auction fetched a weak response, and the miner’s Chhattisgarh auction witnessed flat bids.
Following the price reduction at its Bacheli mines, NMDC Karnataka also announced a marginal cut in auction prices for iron ore from its Donimalai mines on 5 June 2025. The prices for low-grade fines (Fe 57%) and lumps (10-40 mm, Fe 57%) were lowered by INR 39/t ($0.4/t) and INR 79/t ($1/t), respectively, bringing them down to INR 3,673/t ($43/t) and INR 4,266/t ($50/t) compared to the previous auction held on 27 May. These prices are inclusive of royalty, DMF, and NMET.
Additionally, BigMint observed a notable increase in direct sales volumes from the Bellary region. Miners are increasingly opting for direct sales over the e-auction route, with one miner stating that, “Nearly 90% of their total sales are currently being conducted through direct channels.”
Rationale:
- One (1) trade of Fe 57% was recorded in this publishing window, but was not considered under T1 trade, receiving 0% weightage.
- Twelve (12) offers and indicative prices were reported, out of which ten (10) were considered as T2 trades. These were accorded 100% weightage.
However, falling sponge iron prices have raised some concerns among the market players. BigMint’s sponge CDRI prices in Bellary declined by around INR 100/t ($1/t) d-o-d, driven by subdued market sentiment. Sluggish demand in recent weeks led to stock accumulation, prompting sellers to reduce prices under inventory pressure.
Karnataka iron ore sales scenario (30 May-5 June 2025)
Outlook
Domestic low-grade iron ore prices in Karnataka are expected to stay firm in the near term, driven by a recovery in trade activity amid active pre-monsoon restocking. A few miners who were previously inactive have scheduled auctions in the coming weeks, and market participants are closely watching these developments.
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