- Buyers adopt cautious procurement stance
- NMDC maintains dominant market share
Iron ore e-auction sales in Karnataka declined sharply by 15% m-o-m to 1.01 million tonnes (mnt) in November 2025, compared with 1.19 mnt in October, as per data maintained with BigMint. The downturn was largely driven by persistent weakness in the sponge iron and finished steel segments, which significantly curtailed raw material procurement appetite among buyers.
Of the total volumes auctioned in November, iron ore fines accounted for 568,000 tonnes (t), while lumps contributed 449,050 t, indicating continued preference skewed towards fines amid cautious buying behaviour.
Market participants told BigMint that buyers are increasingly steering away from auctions and favouring direct spot purchases at lower prices, as auctions with fixed base prices have become increasingly unattractive in the prevailing subdued market environment. With the exception of NMDC, most miners witnessed lukewarm to poor participation in their auctions. Even NMDC’s Donimalai lumps auction failed to elicit a meaningful response from buyers, underscoring the depth of demand-side weakness.
Meanwhile, several sellers highlighted that despite offering material at heavily discounted levels, buyer interest remained limited due to smaller lot sizes, which reduced operational and procurement efficiency. Additionally, auction base prices were revised downward during the month, as prevailing market prices remained inadequate for buyers to absorb volumes at earlier benchmarks. This further reinforced the cautious, highly price-sensitive sentiment dominating the iron ore market.
NMDC retains dominance despite lower volumes
National Mineral Development Corporation (NMDC), India’s largest iron ore miner, remained the dominant seller in Karnataka, clocking sales of 818,000 t in November 2025. The volume comprising 552,000 t of fines and 266,000 t of lumps marked a notable 24% m-o-m decline from 1.07 mnt recorded in October. Market sources indicated that blast furnace operators with limited market presence stepped in to procure material from NMDC to meet immediate and unavoidable raw material requirements, lending some support to volumes.
Other miners post mixed performance
Vedanta emerged as the second-largest seller, recording 96,200 t of sales in November, entirely comprising lumps. This marked a sharp jump from 28,000 t sold in October, supported by selective buying interest for quality lump ore.
Sandur Manganese and Iron Ore Limited (SMIORE) ranked third, achieving sales of 51,200 t in November, entirely lumps-based. However, volumes declined by 20% m-o-m from 64,000 t in October, reflecting softer demand and increased buyer selectivity.
In contrast, Karnataka State Minerals Corporation Limited (KSMCL) recorded a sharp surge in sales, which rose to 48,000 t in November—comprising 16,000 t of fines and 32,000 t of lumps—from just 20,000 t a month earlier. The increase was largely attributed to strong buyer preference for high-grade material amid constrained availability.
R Praveen Chandra reported significantly weaker performance, selling only 3,850 t of lumps in November, down sharply by 67% from 11,550 t sold in October, highlighting the challenges faced by smaller miners in attracting buyers.
Meanwhile, auctions conducted by SKMEPL and U Krishna Prasad Company once again failed to attract any buyer interest in November, reflecting highly selective procurement behaviour and deepening caution across the iron ore market.
Auction-based iron ore prices declined in November, with monthly weighted average prices of both Fe 60% fines and Fe 63% lumps falling m-o-m. Weighted average prices of Fe 60% fines fell by INR 100/t m-o-m to INR 3,300/t and of Fe 63% lumps dipped by INR 100/t to INR 4,800/t. Prices are exclusive of taxes.
The correction reflects sellers growing willingness to adjust base prices to stimulate participation in an increasingly competitive and demand-constrained market.
Outlook
Karnataka’s iron ore e-auction volumes are expected to hover around current levels with a slight upside bias, supported by increased miner participation. Any improvement in downstream demand conditions may gradually improve buyer sentiment and translate into better auction realisations.
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