- Buyers cautious amid high prices
- Market lacks clear signals
Iron ore prices in Karnataka reflected mixed market dynamics during the week ended 30 April. Low-grade fines (Fe 57%) declined by INR 50/t ($0.5/t) w-o-w to INR 2,500/t ($26/t) ex-mines, weighed down by subdued demand and weak sentiment in the lower-grade segment. Limited buying interest and continued pressure from downstream sectors further dampened price realizations.
In contrast, benchmark Fe 62% fines rose by INR 100/t ($1/t) w-o-w to INR 5,000/t ($52/t), supported by tight availability and sustained preference for higher-grade material. Despite healthy demand, restricted supply has kept prices elevated, with sellers maintaining firm offers.
The overall market continues to face pressure from declining finished steel and sponge iron prices, which has disproportionately impacted lower-grade ore. However, the scarcity of high-grade fines has provided a cushion, preventing any major correction in that segment. Market participants highlighted that while demand for higher-grade material remains intact, elevated offer prices are limiting actual transactions, as buyers remain cautious about cost viability.
Auction activity during the week remained muted, with only a limited number of auctions conducted. Most materials were either transacted at base prices or remained unsold, reflecting buyer resistance to aggressive pricing. Although relatively better interest was observed for higher-grade lots, participation levels were still below typical trends. The absence of auctions from NMDC Limited continues to restrict clear price discovery, keeping market direction uncertain.
Meanwhile, a buyer indicated that “integrated steel producers are currently stable in terms of pricing, though growth in sales volumes remains limited. Expectations of rising fuel costs and their potential impact on logistics and overall pricing are adding to market caution”. Some participants also flagged global uncertainties as a possible factor influencing future price movements.
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.
- Thirteen (13) offers and indicative prices were reported, out of which eleven (11) were considered as T2 trades. These were accorded 100% weightage.
C-DRI prices fall by INR 400/t ($4/t) w-o-w in Bellary: Sponge iron (CDRI) prices in Bellary declined sharply by INR 400/t ($5/t) w-o-w to INR 27,500/t ($290/t). The drop was driven by weak finished steel demand, which has curtailed buying interest. However, d-o-d prices have increased by INR 300/t today.
Karnataka iron ore sales scenario (24-30 April 2026)
Outlook
Low-grade iron ore prices in Karnataka are expected to remain under pressure in the coming week, as demand stays weak with only selective buying interest. In contrast, high-grade material is likely to see further support due to firm offers from private miners.
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