- Firm offers floated by miners
- Buyers waiting for price clarity
Domestic low-grade iron ore fines (Fe 57%) prices in Karnataka’s Bellary remained unchanged this week, reflecting a cautious and subdued market sentiment. BigMint’s weekly index for Fe 57% fines stood stable at INR 3,100/t ($35/t) ex-mines, excluding taxes, while Fe 62% fines were assessed at INR 5,200/t ($59/t) ex-mines, inclusive of taxes, both maintaining parity on a w-o-w basis. The overall tone in the market remained steady, with limited transactions and weak end-user participation.
Despite muted activity, the availability of high-grade material continues to remain tight, as only a few miners currently possess such stocks. This scarcity has kept high-grade prices from softening further. Sponge iron and pellet producers continue to show selective buying interest in high-grade ore, lending some support to market sentiment. Thus, even as overall demand remains sluggish, supply-side constraint has acted as a cushion, keeping prices from slipping lower.
Meanwhile, the latest e-auctions conducted in the region received a lukewarm response, with most lots going unsold. Market participants attributed this to the weak demand environment and sluggish offtake from the downstream sponge iron and steel sectors. Sellers, however, have kept their offers firm in hopes of a revival, though market expectations suggest a possible price correction if demand fails to improve in the coming weeks.
A Bellary-based buyer told BigMint, “No active buying, nothing is happening in the market; demand-supply imbalance persists.” This remark captures the current sentiment of uncertainty and inactivity prevailing across the region, with both buyers and sellers exercising caution amid weak fundamentals.
Echoing a similar tone, a Bellary-based seller also confirmed: “We haven’t sold anything yet as the market is clearly softening, especially for low-grade fines. Buyers are largely on the sidelines, preferring to wait and watch for further price corrections before making any purchases.”
In line with the prevailing trend, NMDC again rolled over its base prices for iron ore from its Donimalai mines in the auction held on 4 November 2025, signalling the absence of any significant shift in fundamentals.
Rationale
No trade was recorded in this publishing window. 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
NMDC’s auctions receive decent response: NMDC’s recent iron ore auctions from its Donimalai and Kumaraswamy mines received a fairly good response. On 11 November, the Donimalai mine auction saw bookings of 16,000 t of iron ore lumps (10-40 mm, Fe 54%) at base price of INR 2,827/t and 24,000 t of fines (Fe 56%) at INR 2,549/t. Similarly, the 12 November auction from the Kumaraswamy mines recorded sales of 98,000-t lumps (10-40 mm, Fe 56.09-62.45%) at INR 3,209-5,135/t against base price INR 2,829-4,385/t and 216,000-t fines (Fe 57.79-63.61%) at INR 2,779-5,342/t. All prices are on an ex-mines basis and include royalty, DMF, and NMET.
C-DRI prices remain firm w-o-w in Bellary: Prices of sponge iron (CDRI) in Bellary remained firm w-o-w at INR 25,000/t ($282/t), supported by steady demand and limited supply. Market sentiment improved slightly as demand from steel smelters and induction furnaces picked up amid increased billet inquiries and higher production activity. On the supply side, a few merchant DRI units were reportedly under temporary shutdown due to maintenance and rising input costs, leading to a marginal shortage in the spot market. This supply tightness, coupled with steady downstream demand, helped sustain prices at current levels, with market participants expecting a potential upward movement if these trends persist in the coming days.
Outlook
Low-grade iron ore prices are expected to remain stable in the near term amid weak market activity. However, if sponge iron prices show further improvement and buying interest strengthens, iron ore prices in Bellary are also likely to witness an upward movement in the coming weeks.
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