- NMDC rolls over its base price for its Donimalai auction
- Sellers have maintained their offers stable
Domestic prices of low-grade iron ore fines (Fe 57%) in Karnatakas Bellary region remained unchanged, with BigMints weekly index assessed at INR 2,700/t ($30/t) ex-mines, excluding taxes, as of 1 January, compared to the previous assessment on 24 December. Similarly, prices of Fe 62% iron ore stood steady at INR 5,100/t ($57/t) ex-mines, inclusive of taxes, registering no week-on-week movement.
The persistent shortage of high-grade material continues to lend strong support to prices in the region, as only a handful of miners are actively offering material in the spot market. This constrained availability has effectively capped any downside risk for higher-grade iron ore. However, despite the supply tightness, buyers remain cautious and are adopting a wait-and-watch approach amid mixed downstream signals.
A Bellary-based miner informed BigMint that “they are refraining from direct market sales at present, preferring to hold volumes in anticipation of a potential price revision. This stance further underscores the prevailing supply discipline among miners.”
On the demand side, a Bellary-based buyer noted that “although sponge iron prices have shown some improvement, buying interest remains restrained, with market participants hesitant to build inventories at current levels.”
Auctions conducted during the week witnessed mixed outcomes, with a few lots attracting healthy participation, while others received a muted response from buyers. In line with the overall market stability, NMDC has again rolled over its base price for the Donimalai auction, reinforcing the cautious equilibrium between demand and supply.
Rationale
- One (1) trade via e-auction was recorded for Fe 57% in this publishing window and were taken into consideration. Hence, the T1 trade category was accorded 50% weightage.
- Fourteen (14) offers and indicative prices were reported, out of which eleven (11) were considered as T2 trades. These were accorded 100% weightage.
C-DRI prices rise by INR 850/t ($9/t) w-o-w in Bellary: Prices of sponge iron (CDRI) in Bellary increased by INR 850/t ($9/t) w-o-w to INR 26,200/t ($291/t) amid improved demand from steel manufacturers. The recent declaration of anti-dumping duties has pushed up prices of primary steel products, the impact of which has also been reflected in the secondary steel mills. Supported by positive market sentiment, buying activities improved, leading to a good volume of trade being recorded in the region.
Karnataka iron ore sales scenario (26 December-01 January 2026)
Outlook
Iron ore prices in Bellary are expected to remain supportive in the near term amid stable seller offers and rise in sponge iron sentiment. However, muted spot buying and selective participation in auctions may cap any sharp upside.
Leave a Reply