India: Low-grade iron ore fines prices in Karnataka remain unchanged w-o-w

• Sponge market falls w-o-w on slow trade
• NMDC Kumaraswamy auction cancelled

Domestic low-grade iron ore fines (Fe 57%) prices remained steady this week in Karnataka’s Bellary region, with BigMint’s weekly index assessed at INR 3,150/tonnes (t) ($36/t) ex-mines Bellary (excluding taxes), stable w-o-w. Similarly, the Fe62% fines index stood at INR 5,250/t  ($60/t) ex-mines Bellary (including taxes), however, deals remained muted in this week.

High-grade material shortage persists in the region, with only a handful of miners offering such material. Market activity has largely been stable with no significant fluctuations, while the number of auctions conducted this week was limited. Although rainfall continues in the region, its impacted on mining and trade activity so far.

Commenting on market sentiment, a Bellary-based buyer told BigMint: “Current levels are still much lower than those seen in previous years around late August, largely due to weak finished steel demand and prevailing tariffs.” Meanwhile, a Bellary-based miner said that “iron ore supply is currently aligned with market requirements, with deliveries being made in line with demand, and fresh deals will be considered once pending quantities are dispatched.”

Rationale

• No trade was recorded for Fe 57% in this publishing window, and hence, the T1 trade category was accorded 0% weightage.
• Sixteen (16) offers and indicative prices were reported, out of which fourteen (14) were considered as T2 trades. These were accorded 100% weightage.

Key Market Drivers

• SMIORE’s auction receives decent response: Sandur Manganese and Iron Ore has scheduled an auction for 128,000 t of iron ore from Bellary, Karnataka, on 26 August in which 14,000 t lumps (5-20 mm, Fe 54.5-56.8%) at INR 3,380-4,430/t, 7,000 t of lumps (10-40 mm, Fe 54.7-57%) were booked at INR 3,360-4,510/t while 11,000 t lumps (20-40 mm, Fe 54.2-57.1%) at INR 3,850-5,110/t, and 16,000 t fines (Fe 57-58.2%) at INR 3,394-3,691/t.
• Bellary C-DRI prices down by INR 150/t ($1.5/t) w-o-w: Prices for sponge iron (CDRI) in Bellary decreased by INR 150/t ($1.5/t) w-o-w to INR 26,000 ($297/t). Trading activity remained comparatively slow in this week.

Karnataka iron ore sales scenario (22-28 August 2025)

Outlook

Low-grade iron ore prices in Karnataka are expected to stay stable amid muted trading, as supply is largely matching demand. High-grade shortages may keep premiums firm, but weak sponge iron demand is keeping the market under pressure. Auction response will be the key driver in the coming weeks.