- Wide bid-offer gaps, muted demand hinder trades
- NMDC Kumaraswamy’s latest auction sees flat bids
Domestic high-grade iron ore fines prices in Karnataka’s Bellary region remained stable w-o-w, with BigMint’s weekly index for the same (Fe 62%) unchanged at INR 4,800/tonne (t) ($56/t) ex-mines Bellary, inclusive of taxes.
However, tags of the low-grade variant (Fe 57%) dropped w-o-w. BigMint’s weekly index (Fe 57%) decreased by INR 50/t ($1/t) to INR 2,700/t ($31/t) ex-mines Bellary (excluding taxes).
For both grades, sluggish buying activity was seen in the market due to weak demand. Additionally, there was a shortage of material in the region.
Sources stated that miners attempted to secure deals at lower prices, but their efforts were unsuccessful. As a result, the market remained quiet, with a moderate transaction volume. Notably, most miners were focused on moving older stock rather than seeking new sales. This indicates a temporary slowdown in the market as the fiscal year comes to an end. Additionally, a source shared with BigMint that low-grade material, particularly Fe 57%, was in short supply in the merchant market, with miners unable to meet the demand for this grade.
Furthermore, a major seller noted, “We reduced the prices in our auction, but they still remain unappealing to buyers.”
As reported earlier by BigMint, the National Mineral Development Corporation (NMDC) recently experienced operational disruptions following a work-to-rule protest by trade unions, which began on 6 March 2025 due to ongoing wage revision discussions. The protest led to a 30-40% reduction in daily production at NMDC’s key complexes in Kirandul, Bacheli, and Donimalai across Chhattisgarh and Karnataka.
The strike ended last night, and operations resumed this morning. NMDC has informed the Chief Labour Commissioner and is actively working to resolve the issue. The company has assured that all assets are fully insured and that the financial impact of the slowdown has been minimal. Conciliation proceedings on 17 March 2025 aimed to restore normal production.
Meanwhile, NMDC’s recent iron ore auction from its Kumaraswamy mines fetched largely flat bids. The auction witnessed bookings of 48,000 t of fines (Fe 61.78%) at INR 4,028/t ($47/t) against the base price of INR 4,018/t ($47/t), while 44,000 t of lumps (10-40 mm, Fe 62.58%) were booked at INR 5,109/t ($59/t) against the base price of INR 5,099/t ($59). Prices are on ex-mines basis, including royalty, DMF, and NMET.
Rationale
- Zero (0) trades were recorded in this publishing window, so T1 trade received 0% weightage.
- Twelve (12) offers and indicative prices were reported, out of which nine (9) were considered as T2 trades. Hence, this category was accorded 100% weightage.
Karnataka iron ore sales scenario (14-20 March 2025)
Outlook
Domestic low-grade iron ore prices are expected to remain volatile in the region, a miner from the region informed BigMint. They stated, “Rumours surrounding the potential imposition of anti-dumping levies – whether they will happen or not – are also affecting the steel market, which in turn is influencing the sentiment around iron ore.”
Meanwhile, the market is closely watching the developments surrounding the mineral rights tax (MRT) bill. Trading activity is expected to pick up in the next fiscal year, as miners will resume full production following the renewal of their environmental clearances.
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