- Tight high-grade supply keeps prices firm, cautious buying caps upside
- Buyers reluctant to build inventory, auctions draw bids only at low prices
Domestic iron ore prices in Karnataka’s Bellary region continued to remain locked in a prolonged phase of stability, underscoring cautious sentiment across the value chain. Prices of low-grade iron ore fines (Fe 57%) were assessed at INR 2,700/t ($29/t) ex-mines, excluding taxes, as of 22 January, unchanged from the assessment on 15 January.
In a similar vein, Fe 62% iron ore prices also held steady at INR 5,100/t ($57/t) ex-mines, inclusive of taxes, on a w-o-w basis. Despite rising prices of finished steel and sponge iron, raw material prices remained largely stable, reflecting weak spot demand and cautious procurement behaviour. However, persistent tightness in high-grade material availability continued to provide strong underlying support to prices, preventing any meaningful downside.
Market participants largely remained on the sidelines, preferring to closely monitor near-term developments before committing to fresh trades. Most buyers indicated that they would reassess procurement strategies over the coming days once greater clarity emerges on downstream price sustainability.
Auction activity during the week saw mixed outcomes, with volumes attracting responses only at relatively lower price levels. Commenting on the trend, a Bellary-based miner told BigMint, “Weaker participation in past auctions resulted in us reviewing our base prices. We reduced base prices in our latest auction, which helped us attract buyer interest.”
Meanwhile, another miner from the region noted, “Buyers are currently reluctant to build inventory, which is keeping raw material prices capped. We have an auction scheduled in the coming days, and the response will provide clearer direction for the market.”
Rationale
- One (1) trade via e-auction was recorded for Fe 57% in this publishing window and was not taken into consideration. Hence, the T1 trade category was accorded 0% weightage.
- Fourteen (14) offers and indicative prices were reported, out of which eleven (11) were considered as T2 trades. These were accorded 100% weightage.
C-DRI prices edge up by INR 150/t ($1.5/t) w-o-w in Bellary: Prices of sponge iron (CDRI) in Bellary increased by INR 150/t ($1.5/t) w-o-w to INR 26,400/t ($288/t), supported by steady trade activity and improving demand conditions in the region, which lent positive momentum to the market.
Karnataka iron ore sales scenario (16 -22 January 2026)
Outlook
Iron ore prices in Bellary are expected to remain supported in the near term amid improving momentum in sponge iron and finished steel prices, which may gradually translate into better raw material demand. Market activity is likely to pick up in the coming weeks as buyers regain confidence and reassess procurement strategies amid clearer downstream price signals.
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