- Prices steady amid tight supply in higher grades
- Pre-monsoon restocking to keep prices supported
Iron ore e-auction sales volumes in Karnataka rebounded by approximately 34% in May 2025, reaching 0.87 million tonnes (mnt), up from 0.65 mnt in April, according to data from BigMint. This recovery follows two consecutive months of decline. Of the total volume sold in May, iron ore fines contributed 480,000 tonnes (t) – a sharp 65% m-o-m increase, while lump sales rose 10% m-o-m to 393,100 t.
In May 2025, NMDC emerged as the sole supplier of iron ore fines in Karnataka’s merchant market, sources informed by BigMint. The surge in e-auction volumes is largely attributed to active pre-monsoon restocking by market participants, following subdued trade in previous months due to limited production.
Key players such as KSMCL, SKMEPL, and Vedanta were notably absent from e-auctions. SKMEPL opted for direct sales instead, KSMCL did not offer any material, and Vedanta – while present – contributed little due to low lump production and no offering of fines.
NMDC tops list with increased offering volumes
- National Mineral Development Corporation (NMDC), India’s largest iron ore miner, sold around 764,000 t from Karnataka via auctions in May, a sharp hike of 139% against 320,000 t in April. Of the total volume sold, 480,000 t were fines (up 233% m-o-m) and 284,000 t, lumps (up 61% m-o-m).
- Sandur Manganese and Iron Ores (SMIORE) sold 86,000 t of lumps in May, a significant drop of around 41% m-o-m from 147,000 t (lumps + fines) sold in April. The reduction was mainly attributed to the miner opting not to offer fines to the merchant market. Also they have sold around 9,000 fines via auction.
- Ramamurthy Praveen Chandra (R. Praveen Chandra) entered the rankings as the third-largest seller in May, recording sales of approximately 23,100 t of lumps after being absent from the merchant market in April.
E-auction iron ore prices stay firm m-o-m
The monthly weighted average e-auction prices of iron ore fines (Fe 60%) and lumps (10-40 mm, Fe 63%) stood stable m-o-m at INR 3,400/t ($40/t) and INR 4,900/t ($57/t), respectively. Prices are on ex-mines basis, excluding royalty, DMF, and NMET.
Iron ore e-auction prices remained firm amid concerns over the limited availability of high-grade material, prompting buyers to place premium bids, BigMint understands.
Outlook
Karnataka’s iron ore e-auction sales volumes are expected to remain stable, supported by active pre-monsoon restocking. Additionally, miners who were absent from the market in May have scheduled their auctions for June, which is likely to further boost volumes.
Meanwhile, uncertainty persists around the Mineral Resources Tax (MRT) Bill, with no further updates at this time.
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