- Market awaits NMDC Donimalai’s price revision
- NMDC’s 23 Apr auction receives active response
Iron ore prices in Karnataka, India, witnessed mixed trends this week. Domestic low-grade iron ore fines (Fe 57%) prices remained flat 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) ($32/t) ex-mines Bellary (excluding taxes).
Conversely, the Fe 62% fines index was assessed at INR 4,950/t ($58/t) ex-mines Bellary, including taxes, up by INR 150/t w-o-w. Additionally, some offers were noted at higher levels, that is INR 5,000-5,100/t ($59-60/t), due to a demand-supply mismatch in the region.
Notably, the National Mineral Development Corporation (NMDC) once again rolled over its iron ore prices for its auction on 30 April 2025, which, along with material shortages, helped sustain domestic prices, BigMint understands.
NMDC Karnataka’s list prices of iron ore fines (-10 mm, Fe 58%) and lumps (10-40 mm, Fe 58%) stood at INR 3,537/t ($42/t) and INR 4,224/t ($50/t), respectively, for the Donimalai auction on 30 April 2025. List prices remained unchanged from the previous revision on 23 April 2025. However, BigMint is still awaiting auction results from the Donimalai and Kumaraswamy mines.
However, the miner’s iron ore auctions from both mines on 23 April 2025 received an active response. From the Donimalai mines, 8,000 t of lumps (10-40 mm, Fe 58%) and 16,000 t of fines (Fe 58%) were booked at base prices of INR 4,224/t ($50/t) and INR 3,537/t ($42), respectively. Additionally, at the Kumaraswamy auction, the entire 144,000 t of lumps and fines offered were sold, with the lots receiving an average premium of 17%.
Meanwhile, market participants in the state are waiting for NMDC Donimalai’s next round of price revision to get better price clarity. They expect a hike following the miners’ latest price rise announcement in Chhattisgarh.
NMDC Chhattisgarh increased its list prices of iron ore on 1 May 2025. The company raised prices of DR-CLO by INR 140/t ($2/t) and fines by INR 440/t ($5/t), effective from 1 May 2025. The miner fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 7,210/t ($85/t) and those of fines (-10 mm, Fe 64%) at INR 5,500/t ($65/t). Prices are on FOR basis from Bacheli complex and include royalty, DMF, and NMET charges.
Rationale
- Zero (0) trades were recorded for Fe 57% in this publishing window, so T1 trade received 0% weightage.
- Fourteen (14) offers and indicative prices were reported, out of which twelve (12) were considered as T2 trades and received 100% weightage.
Karnataka iron ore sales scenario (25 April 2025-1 May 2025)
Outlook
Domestic low-grade iron ore prices in Karnataka are expected to remain supported in the near term amid material shortages in the region. However, trades might remain under pressure amid the arrival of imported cargoes. Meanwhile, the market awaits NMDC Donimalai’s iron ore price announcement.
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