- Tight supply offsets weak demand, keeping prices unchanged
- Prices may firm up by Dec, once steel sector starts to recover
Domestic low-grade iron ore fines (Fe 57%) prices in Karnataka’s Bellary continued to hold firm for yet another week, even as overall market sentiment stayed subdued. BigMint’s weekly index for Fe 57% fines stood steady w-o-w at INR 3,100/t ($35/t) ex-mines, excluding taxes. Likewise, Fe 62% fines were assessed at INR 5,200/t ($59/t) ex-mines, inclusive of taxes, also unchanged w-o-w, signalling a market locked in a wait-and-watch mode.
Direct trades remained muted, and auction activity thinned, leaving market participants waiting for cues that never quite arrived.
High-grade ore availability remained tight, as only a handful of miners are currently offering premium grades. However, with steel market sentiment remaining lacklustre, the limited supply was offset by restrained buying appetite, resulting in a delicately balanced market despite the constrained availability.
A Bellary-based miner stated, “Market sentiment is subdued at the moment. Hardly any buyers are stepping in; that is why NMDC’s auctions are not seeing much participation, and prices are not moving up. We have not been able to dispatch any material this month due to the lack of buying interest. However, we believe this slowdown is temporary. As conditions stabilise, market sentiment should revive, and we expect demand and trading activity to start improving over the next couple of months.”
Echoing this view, a Bellary-based buyer added, “Prices are likely to firm up once the steel sector begins to recover. We are expecting some improvement by December.”
In line with the prevailing trend, NMDC kept its iron ore fines prices unchanged while marginally increasing its lumps prices by INR 23/t ($2/t) to INR 2,850/t ($32/t) in the auction held on 18 November 2025 from its Donimalai mines. The modest upward adjustment in lumps, alongside the roll-over for fines, underscores the continued stability in market fundamentals and the lack of any strong triggers capable of shifting price momentum at present.
Rationale
- One (1) trade via e-auction was recorded for Fe 57% in this publishing window but not taken into consideration. Hence, the T1 trade category was accorded 0% weightage.
- Fourteen (14) offers and indicative prices were reported, out of which thirteen (13) were considered as T2 trades. These were accorded 100% weightage.
C-DRI prices increase w-o-w in Bellary
Prices of sponge iron (CDRI) in Bellary rose by INR 300/t ($3/t) w-o-w to INR 25,300/t ($285/t), supported by improved procurement from steelmakers who were actively buying to sustain their production levels. The uptick in demand coincided with a relatively tight supply scenario, as only a few sponge iron producers were willing to release material into the merchant market due to elevated production costs and concerns over thinning margins. This combination of stronger buying interest and limited offers created a subtle supply-demand imbalance, lending upward momentum to C-DRI prices in the region.
Karnataka iron ore sales scenario (14-20 November 2025)
Outlook
Low-grade iron ore prices in Karnataka are expected to remain supported in the near term, buoyed by consistent demand from blast furnace operators. Auction participation is likely to improve in the coming weeks as buyers gradually return to the market. However, clearer price direction will hinge on a revival in downstream steel sentiment. If the steel value chain shows signs of recovery, mild upward momentum could emerge by December-January.
Leave a Reply