- NMDC fetches premium in Kumaraswamy auction
- Sponge iron prices remain rangebound
Domestic low-grade iron ore fines (Fe 57%) prices remained flat this week in Karnataka’s Bellary region. BigMint’s weekly index for low-grade iron ore fines (Fe 57%) stood unchanged at INR 3,150/tonne (t) ($36/t) ex-mines Bellary (excluding taxes), stable w-o-w.
National Mineral Development Corporation’s (NMDC’s) decision to hike iron ore prices, along with need-based procurement and material shortages, has supported domestic prices. Additionally, the company’s recent iron ore auctions from its Kumaraswamy mines garnered premium bids.
Similarly, the Fe 62% fines index was assessed at INR 5,250/t ($60/t) ex-mines Bellary, including taxes. Despite the stable price level, the market continues to face a shortage of high-grade fines in the region, which has constrained overall availability.
During the week, only one confirmed transaction involving high-grade fines was reported. Market sources indicate that very few miners currently hold high-grade material, further tightening supply and limiting trade volumes in this segment.
A Bellary-based miner stated, “Due to transportation challenges, buyers are increasingly opting for direct purchases over e-auction procurement.” This shift in buying behaviour is driven by the ease and efficiency of direct procurement in the current market environment.
NMDC has revised the base prices for its iron ore auction from the Donimalai mines in Karnataka. Post-revision, fines (-10 mm, Fe 56%) stood at INR 2,989/t ($34/t), up by INR 151/t ($2/t), while lumps (10-40 mm, Fe 55%) were at INR 3,348/t ($38/t). Prices include royalty, DMF, and NMET. The miner has reduced its grade of lumps.
Rationale
- One (1) trade of 32,000 t via e-auction was recorded in this publishing window and were not considered under T1 trade. These were accorded 0% weightage.
- Fourteen (14) offers and indicative prices were reported, out of which thirteen (13) were considered as T2 trades receiving a 100% weightage.
Factors supporting low-grade offers:
- NMDC auctions witness strong participation: NMDC’s recent iron ore auctions from its Donimalai and Kumaraswamy mines received premium bids. On 5 August, Donimalai’s auction saw full booking of32,000 t lumps (10-40 mm, Fe 55%) was booked at INR 3,358/t (INR 10/t premium) and 16,000 fines (Fe 56%) at the base price of INR 2,989/t. Similarly, the 6 August auction from the Kumaraswamy mine offerings attracted strong buying interest. A total of 112,000 t of lumps (10-40 mm, Fe 58.93–60.91%) were sold at INR 4,483-5,323/t, securing premiums over base prices of INR 4,178-4,753/t. Furthermore, 232,000 t of fines (Fe 56.21-60.83%) were booked at INR 2,892-4,146/t, compared to base prices ranging from INR 2,892-3,986/t. All prices mentioned are inclusive of royalty, DMF, and NMET.
- Bellary C-DRI prices inch up w-o-w: Sponge iron (CDRI) prices in Bellary, Karnataka edged up by INR 100/t ($1/t) w-o-w. Prices witnessed an increase amid hike in semi-finished steel prices and decent trade activity.
- Low-grade export prices remain stable w-o-w: BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export index remained stable w-o-w to $64/t FOB east coast on 7 August. Few deals were under negotiation this week, as per data recorded by BigMint; however, no confirmed deal was concluded by Indian iron ore exporters.
Karnataka iron ore sales scenario (1-7 August 2025)
Outlook
Low-grade iron ore fines prices in Karnataka are expected to remain stable to slightly firm in the near term. This outlook is supported by NMDC’s recent price hike, sustained demand from sponge iron producers amid rising C-DRI prices, and limited availability of material in the region.
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