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

• No direct trade recorded this week
• NMDC rolls over base price for recent auction

Domestic low-grade iron ore fines (Fe 57%) prices continue to 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), steady w-o-w.

Similarly, the Fe 62% fines index stood at INR 5,250/t ($60/t) ex-mines Bellary (including taxes), firm w-o-w. A persistent and acute shortage of high-grade material continues to grip the market, acting as a strong pillar of support for price stability and preventing any downward drift.

Sponge iron prices witnessed an upward movement this week, while pellet prices remained largely stable. At the same time, finished steel demand showed signs of improvement, reflecting a positive shift in downstream consumption. These combined factors have supported Karnataka’s iron ore prices, preventing any decline and helping maintain market stability despite prevailing uncertainties.

This week, market activity slowed down as continuous rainfall impacted trade. A Bellary-based buyer told BigMint, “We usually avoid purchases during the rainy season due to the operational challenges posed by monsoon.”

National Mineral Development Corporation (NMDC), Karnataka, has released the base prices for its iron ore auction from the Donimalai mines on 8 September. Prices for fines (-10 mm, Fe 56%) and lumps (10-40 mm, Fe 55%) have been kept unchanged at INR 2,989/t ($34/t) and INR 3,348/t ($38/t), respectively, from the last revision on 5 August. Prices are inclusive of 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.
• Fifteen (15) offers and indicative prices were reported, out of which twelve (12) were considered as T2 trades. These were accorded 100% weightage.

Key market drivers

• NMDC auction witnesses good response: NMDC auctioned 152,000 t of iron ore from its Kumaraswamy mines in Karnataka on 10 September in which the entire quantity was sold. 40,000-t lumps (10-40 mm, Fe 60.42%) were booked at INR 4,850/t, fetching an INR 240/t premium against a base price of INR 4,610/t, and 112,000 t of fines (Fe 58.26-61.05%) were sold at base prices of INR 3,378-4,038/t. Prices are inclusive of royalty, DMF, and NMET.
• Bellary C-DRI prices increase w-o-w: Sponge iron (CDRI) prices in Bellary, Karnataka rose by INR 450/t ($5/t) w-o-w supported by active bookings at the beginning of the week. However, buying interest slowed later as most buyers had already secured sufficient volumes.

Karnataka iron ore sales scenario (5-11 September 2025)

Outlook

Karnataka iron ore prices may witness volatile movements amid fluctuating sponge iron demand, stable pellet prices, and firm steel market cues. Uncertainty around monsoon disruptions and limited high-grade ore availability could add to market swings.