India: Karnataka iron ore prices remain firm w-o-w as market awaits NMDC’s price revision

• Limited deals via direct trade seen this week
• Finished steel market sentiments stay weak

Domestic low-grade iron ore fines (Fe 57%) prices remained firm this week in Karnataka’s Bellary. BigMint’s weekly index for low-grade iron ore fines (Fe 57%) stood at INR 3,150 tonne/t ($36/t) ex-mines Bellary (excluding taxes), stable, w-o-w. Despite muted market engagement, the price held firm, amid steady supply dynamics. However, there is absence of fresh trades.

And the Fe62% fines index was assessed at INR 5,250/t ($60/t) ex-mines Bellary, with no change recorded this week. Although some movement was recorded through e-auctions, there was no visible direct spot trade in the open market during the assessment window.

According to market sources, the supply of high-grade material remains tight in the Bellary region. A Bellary-based miner remarked, “We plan to revise prices next month, as we are currently dispatching material against previously secured bulk orders.”

Despite ongoing seasonal rainfall, no major disruption has been reported in mining or transportation activities across the Bellary market. Market participants confirmed that monsoon conditions have had minimal impact on iron ore operations so far.

Industry players in Karnataka are now closely watching the upcoming NMDC Donimalai iron ore auction, which is expected to provide better pricing direction and influence the broader market sentiment.

Rationale

• No trade was recorded for Fe 57% in this publishing window, and hence, the T1 trade category was accorded 0% weightage.
• Fourteen (14) offers and indicative prices were reported, out of which nine (9) were considered as T2 trades. These were accorded 100% weightage

Factors supporting low-grade prices

• KSMCL auction receives weak response: In KSMCL’s auction which was conducted on 25 July, 224,000 t of iron ore were offered in which only 4,000 t of lumps (10-40 mm, Fe 64.3%)and 48,000-t fines (Fe 62.11-62.54%) were booked at INR 5,478/t and INR 4,704-4,736/t (all at base prices, excluding taxes).
• Bellary C-DRI prices down w-o-w: In contrast, prices of sponge iron (CDRI) in Bellary declined by INR 200/t ($2/t) w-o-w to INR 26,000/t ($297/t). Buyer participation remained limited, with lower enquiry volumes keeping spot activity restricted. The continued weakness in downstream finished steel demand has adversely impacted sponge iron consumption, placing downward pressure on raw material prices as well.

Karnataka iron ore sales scenario (25-31 July 2025)

Outlook

Low grade iron ore prices may remain steady despite the absence of direct trade activity and weak demand in the finished steel segment. While low-grade fines prices are holding firm amid stable supply, high-grade material remains scarce. With limited buyer participation and declining sponge iron prices, market sentiment stays subdued. The upcoming NMDC Donimalai auction is expected to offer clearer price direction in the near term.