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

• Spot market activity remains quiet 
• NMDC rolls over base price for auction

Domestic low-grade iron ore fines (Fe 57%) prices in Karnataka’s Bellary region remained stable for yet another week. BigMint’s weekly index was assessed at INR 3,150/tonne ($35/t) ex-mines, excluding taxes, unchanged w-o-w. Similarly, prices for Fe 62% fines were assessed at INR 5,250/t ($59/t) ex-mines Bellary, inclusive of taxes, also holding firm on a weekly basis. Market activity stayed subdued, with no direct deals reported during the week, indicating limited spot market participation amid steady demand and supply dynamics.

High-grade iron ore continues to remain in short supply, as only a handful of miners are currently offering such grades in the market. Although demand for high-grade ore remains healthy, limited availability has kept prices stable, with buyers showing steady interest despite constrained supply.

A Bellary-based miner said that “the iron ore market remains steady, with prices showing no significant movement, neither upward nor downward.”

A Bellary-based buyer informed BigMint that “iron ore prices are expected to remain stable in the near term, with any market improvement likely only after Diwali.” The buyer added that weak finished steel demand continues to keep raw material prices largely stable.

Meanwhile, NMDC maintained price stability by keeping its base price unchanged in the latest auction on 8 October.

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 eleven (11) were considered as T2 trades. These were accorded 100% weightage.

Key market drivers

• NMDC’s auction receives positive response: NMDC’s recent iron ore auctions from its Donimalai and Kumaraswamy mines received a fairly positive response. On 7 October, the Donimalai mine auction saw full bookings of 28,000 t of iron ore lumps (10-40 mm, Fe 53-54%) at INR 2,748/t and 20,000 t of fines (Fe 56%) at the base price of INR 2,989/t. Similarly, the 8 October auction from the Kumaraswamy mines recorded sales of 40,000 t of lumps (10-40 mm, Fe 61.12%) at INR 5,293/t (base price INR 4,813/t) and 160,000 t of fines (Fe 58.64-62.81%) in the range of INR 3,467-5,115/t against base prices of INR 3,467-4,455/t. All prices are on an ex-mines basis and include royalty, DMF, and NMET.
• C-DRI prices remain largely firm w-o-w in Bellary: In contrast, prices for sponge iron (CDRI) in Bellary inched down by INR 50/t ($1/t) w-o-w to INR 25,950/t ($292/t). Sources indicated that muted demand from secondary steel mills continues to weigh on market sentiment. With labour availability constrained during the festive period, overall buying activity remained low, keeping prices rangebound.

Karnataka iron ore sales scenario (3-9 October 2025)

Outlook

Iron ore prices in Karnataka are expected to remain stable in the near term, supported by balanced demand-supply conditions. Festive-season sluggishness and weak steel demand may limit price movement in the coming weeks. A market rebound is likely post-Diwali, once industrial activity and labour availability improve.