- Monsoon disrupts logistics
- Buyers wait for clearer market trends
Iron ore e-auction sales volumes in Karnataka dropped by 27% m-o-m to 0.85 million tonnes (mnt) in September 2025 against 1.17 mnt in August, as per BigMint’s data. Of the total volumes sold in September, fines accounted for 460,000 tonnes (t) and lumps 388,350 t.
The decline in Karnataka’s iron ore e-auction sales volume in September 2025 can primarily be attributed to muted demand from the domestic steel and sponge iron sectors. Sponge iron producers in the Bellary region operated at lower capacity utilization amid weak finished steel prices and sluggish offtake, which limited their procurement appetite for raw materials.
The significant reduction in NMDC’s sales volumes-down 41% m-o-m indicates a cautious approach by buyers amid price uncertainty and fluctuating market trends. With multiple auctions held across different grades and logistics challenges persisting due to monsoon effects, buyers preferred to wait for more price clarity. As a result, the overall e-auction volume dropped.
NMDC’s sales drop m-o-m
National Mineral Development Corporation (NMDC), India’s largest iron ore miner, sold 583,000 t of iron ore from Karnataka via auctions in September 2025. This volume, comprising 368,000 t of fines and 215,000 t of lumps, marks a 41% decrease compared with 988,000 t in August 2025.
Performance of other miners
Karnataka State Minerals Corporation Limited (KSMCL) emerged as the second-leading miner, recording 178,000 t of iron ore sales in September, comprising 76,000 t of fines and 102,000 t of lumps. Sales increased sharply from 24,000 t in August.
Sandur Manganese and Iron Ore (SMIORE) sold 57,000 t of iron ore in September. The volume, which comprises 16,000 t of fines and 41,000 t of lumps, was lower by 47% as compared to 107,000 t in August.
Vedanta sold 18,800 t of iron ore lumps in September, with the total down by 54% as compared to 41,000 t in the previous month.
R Praveen Chandra sold 11,550 t of lumps in September, maintaining the same sales volume as in the previous month.
U Krishna Prasad’s auction and BKG Mining’s auction did not fetch a response from buyers.
Iron ore prices exhibit mixed trends m-o-m
Iron ore tags showed divergent movements in September, with monthly weighted average prices of iron ore Fe 60% fines and Fe 63% lumps falling m-o-m. Weighted average prices of Fe 60% fines fell by INR 50/t m-o-m to INR 3,650/t and of Fe 63% lumps dipped by INR 100/t to INR 5,000/t. Prices are exclusive of taxes.
Outlook
Iron ore e-auction sales volumes are likely to improve in the coming month as mining operations gain momentum with the end of the monsoon season. Increased participation from miners and a recovery in downstream demand from steel and sponge iron units are expected to support higher trading activity.
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