- Stable ore prices, steady steel demand lift iron ore demand
- Logistics operations improve following extended monsoon
Iron ore e-auction sales in Karnataka registered a sharp 41% m-o-m jump to 1.19 million tonnes (mnt) in October 2025, compared with 0.85 mnt in September, according to data maintained with BigMint. The robust rise in volumes reflects improved buying interest from sponge iron and pellet producers amid stable ore prices and steady steel demand.
Of the total auctioned material in October, iron ore fines accounted for 612,000 tonnes (t), while lumps contributed 585,550 t.
The sharp 41% m-o-m increase can be attributed to a combination of improved market conditions and seasonal recovery in demand. First, increased participation from sponge iron and pellet manufacturers significantly boosted buying activity. These downstream units, which had remained cautious during the monsoon season due to production disruptions and weak steel demand, returned to the market as operations normalised.
A seasonal improvement in logistics and post-monsoon operational resumptions supported smooth material movement across mining and consuming regions. Better road connectivity and reduced rainfall-related disruptions facilitated higher offtake from mine heads. Additionally, with the end of the monsoon and festive season, steel producers began restocking raw materials in anticipation of increased construction and infrastructure activity, further driving up e-auction demand in Karnataka during October.
NMDC drives market momentum
National Mineral Development Corporation (NMDC), India’s largest iron ore miner, led the surge in sales, recording 1.07 mnt of iron ore sales in October 2025. The volume, comprising 592,000 t of fines and 482,000 t of lumps, marked a significant 84% m-o-m increase from 583,000 t in September. The jump in NMDC’s sales was supported by consistent participation from sponge iron units.
Other miners see mixed performance
Sandur Manganese and Iron Ore (SMIORE) emerged as the second-largest seller, achieving 64,000 t in sales during October (comprising 4,000 t of fines and 60,000 t of lumps), up from 57,000 t in September.
Vedanta also posted a strong rebound, selling 28,000 t (4,000 t fines and 24,000 t lumps), up 49% m-o-m from 18,800 t in September, driven by improved market sentiment and active buyer participation.
In contrast, Karnataka State Minerals Corporation Limited (KSMCL) saw a sharp decline, with sales plunging 89% to 20,000 t (12,000 t fines and 8,000 t lumps) from 178,000 t a month earlier, amid muted buyer response to its offered grades.
R Praveen Chandra maintained stable sales at 11,550 t of lumps, showing no change from September levels.
Meanwhile, SKMEPL and BKG Mining Company’s auctions failed to attract buyer interest in October, reflecting selective procurement trends in the market.
Iron ore prices exhibit mixed trends m-o-m
Iron ore prices declined in October, with monthly weighted average prices of both Fe 60% fines and Fe 63% lumps falling m-o-m. Weighted average prices of Fe 60% fines fell by INR 250/t m-o-m to INR 3,400/t and of Fe 63% lumps dipped by INR 100/t to INR 4,900/t. Prices are exclusive of taxes.
Outlook
Karnataka’s iron ore e-auction volumes are expected to continue their upward trajectory in November 2025, supported by multiple seasonal and operational factors. With most miners resuming full-fledged production following the monsoon and festive breaks, auction participation is set to rise, both in terms of offered volumes and buyer activity.
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