Karnataka: NMDC’s Kumaraswamy auction sees strong bidding amid tight high-grade ore supply

• Lumps premiums reach up to INR 960/t, fines fetch INR 490/t
• Rising CDRI prices, positive steel market sentiment support bids

NMDC auctioned 301,000 t of iron ore from its Kumaraswamy mines in Karnataka on 26 May 2026, with the entire quantity successfully booked amid strong buyer participation and improving market sentiment. The auction witnessed premiums of up to INR 960/t for lumps and INR 490/t for fines, reflecting robust demand for high-grade material in the region.

In the CLO segment, around 89,000 t (10-40 mm, Fe 60-64.37%) were sold at INR 4,497-5,756/t against base prices of INR 3,827-4,906/t. Meanwhile, 212,000 t of fines (Fe 61.17-62.42%) were booked at INR 3,513-4,248/t, compared to base prices of INR 3,503-3,758/t. Prices exclude royalty, DMF, and NMET charges.

This marked NMDC’s first auction from the Kumaraswamy mines in FY’27 and was closely tracked by market participants to gauge fresh pricing direction in the southern iron ore market. Buyers remained aggressive in the auction, as several traders and end-users were waiting for NMDC’s benchmark sale to assess prevailing market conditions before taking further procurement positions.

The strong response was largely supported by the limited availability of high-grade iron ore in Karnataka, which has continued to tighten spot supply conditions. Higher-grade material attracted particularly strong bids, highlighting sustained preference from sponge iron and steel producers for better-quality ore amid improving finished steel sentiment.

Market participants expect the successful auction outcome to provide further support to private miners’ offer prices in the region. The stronger realisation achieved by NMDC is likely to influence upcoming spot and auction prices, especially as sentiment in the downstream steel sector has improved over the past week.

Adding to the positive momentum, sponge iron prices in Bellary also moved up during the assessment period. Prices of sponge iron (CDRI) increased by INR 700/t w-o-w to INR 27,200/t on 26 May 2026, against INR 26,500/t on 19 May 2026, supported by improved buying interest and stronger bookings concluded earlier in the week. Sellers largely maintained a firm stance amid the positive sentiment, although overall trade volumes remained moderate.