India: Iron ore fines prices in Karnataka remain stable w-o-w

• High-grade ore shortage supports stable fines prices
• Rising steel inventories reduce demand for raw materials

Domestic low-grade iron ore fines (Fe 57%) prices remained unchanged this week in Karnataka’s Bellary region, with BigMint’s weekly index assessed at INR 3,150/tonnes (t) ($36/t) ex-mines Bellary (excluding taxes), flat w-o-w.

Similarly, the Fe 62% fines index stood at INR 5,250/t ($60/t) ex-mines Bellary (including taxes), unchanged w-o-w. Market participants highlighted that the availability of high-grade iron ore remained tight in the region, as currently, only a handful of miners possess and supply such material. This persistent shortage of high-grade fines kept prices firm despite muted buying interest from some sections of the market.

A Bellary-based miner stated, “Prices are stable with no significant changes observed this week. Our auction, however, remained unsold.” He further added that only a limited number of private miners were actively engaged in direct sales in the market, while overall activity remained subdued.

A Bellary-based buyer told BigMint, “Normally, the monsoon season leads to a price drop due to moisture concerns and production slowdowns. But this year, prices have stayed balanced since production has continued without any major disruptions.”

Rationale

• No trade was recorded for Fe 57% in this publishing window, and hence, the T1 trade category was accorded 0% weightage.
• Nineteen (19) offers and indicative prices were reported, out of which sixteen (16) were considered as T2 trades. These were accorded 100% weightage.

Key market drivers

• NMDC auction witnesses decent response:NMDC auctioned 147,000 t of iron ore from its Kumaraswamy mines in Karnataka on 17 September. The auction received premiums of up to 20% over base prices. The entire 51,000 t of lumps (10-40 mm, Fe 61.99-62.14%) were booked at INR 5,470-6,030/t (base price INR 5,066-5,110/t/), and 106,000 t fines (Fe 59.28-63.54%) were sold at INR 3,618-5,550/t (base price INR 3,618-4,627/t). Prices are inclusive of royalty, DMF, and NMEDT.
• Bellary C-DRI prices decrease w-o-w: Sponge iron (CDRI) prices in Bellary, Karnataka, fell by INR 350/t ($4/t) w-o-w to INR 26,200/t ($297/t). The fall was primarily driven by weak demand for finished steel, which led to higher inventory levels and exerted pressure on CDRI prices.

Karnataka iron ore sales scenario (12-18 September 2025)

Outlook

Low-grade iron ore prices in Karnataka are expected to stay range-bound in the near term, supported by the limited availability of high-grade material. However, weak C-DRI and finished steel demand may keep buying activity cautious. Any improvement in steel demand or easing of monsoon disruptions could lend support to price movements ahead.