- Festivals dampen spot trade activity
- Iron ore prices to receive downstream support
Prices of low-grade iron ore fines (Fe 57%) in Karnataka remained unchanged, with BigMint’s weekly index assessed at INR 2,700/t ($30/t) ex-mines, excluding taxes, as of 15 January, unchanged from the previous assessment on 8 January. Similarly, prices of Fe 62% iron ore held stable at INR 5,100/t ($57/t) ex-mines, inclusive of taxes, recording no w-o-w movement amid unchanged fundamentals and cautious buyer attitude.
Domestic iron ore prices in Karnataka’s Bellary region remained stable during the week, as market activity slowed sharply due to the Makar Sankranti and Pongal festivals across southern India. Trading operations were largely suspended, leading to thin spot transactions and muted participation from both buyers and sellers. The festive slowdown, coupled with labour shortages, kept overall sentiment subdued and prices range-bound.
Despite muted market conditions, prices continued to find underlying support from a visible uptick in finished steel and sponge iron prices during the week. This upward movement in downstream segments helped prevent any slide in raw material prices. However, buyers remained cautious, refraining from aggressive procurement, while sellers largely adopted a wait-and-watch approach amid expectations of improved activity post-festivals. Persistent shortages of high-grade iron ore in the region further supported prices, keeping demand for premium material intact.
NMDC has again shifted its pricing structure from a tax-inclusive model to one that excludes royalty, DMF, and NMEDT charges. The miner has fixed its prices for iron ore auction from the Donimalai mines. Prices of fines (-10 mm, Fe 55%) and lumps (10-40 mm, Fe 55%) have been kept at INR 1,940/t ($21/t) and INR 2,167/t ($24/t), respectively, on 13 January. Prices exclude royalty, DMF, and NMET.
A Bellary-based trader informed BigMint, “We are closely monitoring the market and are inclined to consider a price increase, as overall sentiment is gradually turning positive.”
Meanwhile, a Bellary-based buyer highlighted the impact of the festive season, stating, “Due to festivals across south India, market activity has remained muted this week. Labour shortages are also a concern, as most workers are engaged in celebrations.”
Rationale
- One (1) trade via e-auction was recorded for Fe 57% in this publishing window and were not taken into consideration. Hence, the T1 trade category was accorded 0% weightage.
- Thirteen (13) offers and indicative prices were reported, out of which nine (9) were considered as T2 trades. These were accorded 100% weightage.
Karnataka iron ore sales scenario (09 -15 January 2026)
Outlook
Iron ore prices in Karnataka are expected to remain supported in the coming week, backed by improving finished steel prices and the conclusion of the festive period. With labour availability normalising and market activity gradually resuming, trading sentiment is likely to strengthen. As a result, prices may witness a modest improvement in the coming days.
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