India: Low-grade iron ore fines prices in Karnataka edge up on improved steel demand

• Sponge iron prices increase by INR 550/t w-o-w
• NMDC’s iron ore auctions see healthy response

Karnataka’s low-grade iron ore fines (Fe 57%) prices inched up this week, supported by strong participation in recent auctions, a recovery in sponge iron tags, and improved steel demand. BigMint’s weekly index for the same stood at INR 2,900/tonne (t) ($34/t) ex-mines Bellary (excluding taxes), marking a w-o-w rise of INR 100/t ($1/t).

Meanwhile, the index for Fe 62% fines remained unchanged w-o-w at INR 5,000/t ($58/t) ex-mines Bellary (inclusive of taxes), although no confirmed trades were reported at these levels. Despite the price stability, private miners continued to adopt a cautious approach and did not revise their offers in line with market shifts.

Notably, NMDC has kept its base price same against the last auction conducted on 2 Jul’25 from its Donimalai mines. NMDC’s recent iron ore auctions from its Donimalai and Kumaraswamy mines received a healthy response. On 8 July, Donimalai’s auction saw full booking of 16,000-t lumps (10-40 mm, Fe 56%) at INR 3,480/t ($41/t) and 8,000-t fines (Fe 56%) at INR 2,842/t ($33/t). Similarly, the 9 July auction from the Kumaraswamy mines recorded sales of 64,000-t lumps (10-40 mm, Fe 57.46-62.68%) at INR 3,855-5,517/t ($45-64/t) and 92,000-t fines (Fe 57.8-58.85%) at INR 3,092-3,329/t ($36-39/t). All prices are on an ex-mines basis and include royalty, DMF, and NMET.

Rationale

• No trade was recorded for Fe 57% in this publishing window, and hence, the T1 trade category was accorded 0% weightage.
• Thirteen (13) offers and indicative prices were reported, out of which twelve (12) were considered as T2 trades. These were accorded 100% weightage.

Factors affecting Karnataka’s low-grade prices

• Bellary’s CDRI prices rise w-o-w: Sponge iron (CDRI) prices in Bellary, Karnataka, rose INR 550/t ($6/t) w-o-w. An improvement in finished steel prices supported CDRI tags.
• Low-grade export prices rise w-o-w: BigMint’s weekly Indian low-grade iron ore fines (Fe 57%) export index rose by $0.5/t w-o-w to $63/t FOB east coast on 10 July amid improved global sentiments. This stability could be attributed to positive macroeconomic signals from China, which lifted the global fines market and supported trading activity.

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

Outlook

Low-grade iron ore prices in Karnataka are expected to hold steady in the near term, backed by improving demand in the finished steel segment. With a few miners scheduling fresh auctions, market participants are closely tracking these events for pricing cues.