- NMDC 5-6 June auctions receive active response
- Uncertainty around MRT continues to impact market
Prices of domestic low-grade iron ore fines (Fe 57%) remained steady this week in Karnataka’s Bellary region. BigMint’s weekly index for Fe 57% stood unchanged week-on-week (w-o-w) at INR 3,100/tonnes (t) ($36/t) ex-mines Bellary, excluding taxes. However, trading activity in this specific low-grade fines segment remained subdued, with just one deal reported at comparable price levels in National Mineral Development Corporation’s (NMDC) e-auction from the Donimalai mines.
Meanwhile, the Fe 62% fines index was assessed at INR 5,250/t ($61/t) ex-mines Bellary, inclusive of taxes. As per BigMint, miners were actively offering high-grade material in the merchant market, mainly via direct sales. NMDC’s auction for this grade also drew premium bids, driven by active pre-monsoon restocking and concerns over material shortage.
“Availability remains limited. This time, we opted for the NMDC auction, as it is the sole active player in the merchant market, which is why its auction is attracting strong participation,” said a Bellary-based buyer.
As previously reported by BigMint, NMDC in Karnataka resumed selling low-grade iron ore fines (Fe 57%) through e-auction after a long hiatus. This week, NMDC continued its offerings from the Donimalai mines and remained the sole active supplier of this grade, resulting in premium bids at the auction.
NMDC’s iron ore auction from Donimalai on 5 June received a strong response. Sources reported that the entire quantities of 16,000 t of lumps (10-40 mm, Fe 57%) and 32,000 t of fines (Fe 57%) were booked at INR 4,406-4,416/t ($52/t) and INR 3,673/t ($43/t), respectively.
Additionally, an auction from NMDC’s Kumaraswamy mines attracted premium bids, with around 104,000 t of lumps (10-40 mm, Fe 59.54-63.91%) and 92,000 t of fines (Fe 60.52-63.97%) booked at INR 5,137-6,366/t ($60-74/t) and INR 4,384-6,021/t ($51-70/t), respectively.
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: “Nearly 90% of our total sales are currently being conducted through direct channels.”
Rationale:
- One (1) trade of Fe 57% via e-auction was recorded in this publishing window, and was considered under T1 trade, receiving 50% weightage.
- Sixteen (16) offers and indicative prices were reported, out of which fourteen (14) were considered as T2 trades. These were accorded 50% weightage.
Additionally, recovering sponge iron prices in the region have provided some support. BigMint’s sponge CDRI prices in Bellary remained stable d-o-d at INR 25,100/t ($293/t) exw on 12 June. An increase in buying activity was observed, driven by a positive market outlook.
Karnataka iron ore sales scenario (5-6 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.
Moreover, according to sources, market participants remain uncertain about the MRT bill due to the absence of any significant update from the President’s office. This is continuing to affect sentiment.
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