India: Iron ore prices in Karnataka remain stable as market awaits NMDC’s price revision

• NMDC Chhattisgarh cuts prices by INR 500-650/t
• Prices in Karnataka expected to correct after this week

Domestic low-grade iron ore fines (Fe 57%) prices in Karnataka’s Bellary region continued to remain stable for yet another week. BigMint’s weekly index was assessed at INR 3,150/tonne ($35/t) ex-mines, excluding taxes, showing no change w-o-w. Similarly, Fe 62% fines were assessed at INR 5,250/t ($59/t) ex-mines, Bellary, inclusive of taxes, also holding firm compared to the previous week.

Market activity stayed subdued, with sentiment weighed down by the continued decline in finished steel and sponge iron prices, which has kept buying interest and trading volumes under pressure across the region.

A Bellary-based buyer informed BigMint that “prices have remained stagnant and are expected to stay range-bound over the next two to three weeks.” He added that the persistent decline in sponge iron prices is exerting downward pressure on raw material prices, keeping overall market sentiment weak.

Echoing a similar view, a Bellary-based miner stated that “prices have largely remained stable but may see a downward correction in the near term.” He noted that continuous rainfall over the past week -caused by the Diwali-related market closures, led to limited trading activity and minimal price movement.

Meanwhile, NMDC Karnataka has rolled over its iron ore prices from the Donimalai mines as of 21 October. Prices of fines (-10 mm, Fe 56%) and lumps (10–40 mm, Fe 54%) remain unchanged at INR 2,738/t ($31/t) and INR 2,989/t ($34/t), respectively. On the other hand, NMDC (Chhattisgarh) reduced its list prices of iron ore on 22 October by INR 500-650/t.  Thus, market is awaiting price revision by NMDC Karnataka in the upcoming auctions.

Overall, the market continues to remain quiet, with participants anticipating a possible price correction in the near term once trading resumes momentum.

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 twelve (12) were considered as T2 trades. These were accorded 100% weightage.

Key market drivers

• NMDC’s auction receives decent response: NMDC’s iron ore auction from the Donimalai mines on 21 October, 2025 witnessed total bookings of 48,000 t. 16,000 t of fines (Fe 56%) were booked at base price of INR 2,989/t ($34/t) while 32,000 t of lumps (10-40 mm, Fe 54%) were booked at base price of INR 2,738/t ($31/t). Prices are on an ex-mines basis and include royalty, DMF, and NMET.
• C-DRI prices fall by INR 300/t ($3/t) w-o-w in Bellary: In contrast, prices for sponge iron (CDRI) in Bellary fell by INR 300/t ($3/t) w-o-w to INR 25,000/t ($285/t). Trading activity remained subdued, impacted by festive holidays and labour shortages, as a significant portion of the workforce returned to their hometowns for the celebrations, leading to lower production and market participation during the week.

Outlook

Iron ore prices in Bellary are expected to remain under pressure in the near term amid weak sponge iron and steel demand. However, once post-festive activity resumes and weather conditions improve, trading volumes may recover gradually.