- Miners prefer direct sales over e-auctions
- High grades seeing quality degradation
Domestic low-grade iron ore fines (Fe 57%) prices remained unchanged w-o-w in Karnataka’s Bellary region. BigMint’s weekly index for the same (Fe 57%) stood unchanged w-o-w at INR 2,700/tonne (t) ($31/t) ex-mines Bellary (excluding taxes).
Similarly, the Fe 62% fines index was also assessed stable w-o-w at INR 5,100/t ($59/t) ex-mines Bellary, including taxes. Additionally, some offers were noted at higher levels of INR 5,050-5,400/t ($59/t). No deals were concluded this week at the prevailing offers, as buyers showed a preference for booking at lower price levels.
Prices remained stable on supply concerns and limited offers. Only a limited number of miners were active in the merchant market during the week under review, leading to a supply crunch that further supported iron ore prices in the region. Echoing this trend, a Bellary-based buyer told BigMint, “Except for SKMEPL and NMDC, no one else is participating in the market.”
Another source from the region said, “With poor response to auctions, sales are entirely via direct mode. However, market sentiment is strengthening ahead of monsoon restocking.”
A regional source noted that the arrival of imported cargoes at southern ports continues to weigh on domestic market sentiment. Reflecting this view, a local manufacturer commented, “The domestic market is facing pressure due to increasing volumes of imports.”
“There is a growing shortage of high-grade iron ore lumps in Karnataka. Currently, only a limited number of suppliers are offering material that meets high-grade specifications. However, even the quality of these grades has reportedly started to decline, raising concerns about consistent quality. This supply tightness has further reinforced the need for imports, particularly of South African origin, which are seen as a reliable alternative, offering higher and more consistent Fe content,” noted a major Bellary-based buyer.
Rationale
- Zero (0) trades of Fe 57% were recorded in this publishing window, so T1 trade received 0% weightage.
- Twelve (12) offers and indicative prices were reported, of which nine (9) were considered as T2 trades. Hence, this category was accorded 100% weightage.
Karnataka iron ore sales scenario (16-22 May 2025)
Outlook
Domestic low-grade iron ore prices in Karnataka are expected to stay firm in the near term, supported by supply shortages. Trading activity is also likely to remain strong, driven by a recovery in demand and active restocking ahead of the monsoons, sources informed.
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