- NMDC’s iron ore auction sees decent response
- MRT to impact market in next fiscal year
Domestic low-grade iron ore fines (Fe 57%) prices remained flat this week 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).
However, the Fe 62% fines index rose w-o-w by INR 100/t ($1/t) to INR 4,900/t ($56/t) ex-mines Bellary, inclusive of taxes amid shortage of material in the region. Additionally, some offers were seen at higher levels, that is INR 5,000-5,100/t ($57-59/t). Despite ongoing supply concerns in the region, no deal was finalised for offers at higher level. Also,
Notably, the National Mineral Development Corporation (NMDC) continue to keep its iron ore auction prices unchanged, which, along with material shortages, helped sustain domestic prices amid need-based procurement. Additionally, the company’s recent iron ore auctions at its Donimalai mines garnered a decent response.
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 ($41/t) and INR 4,224/t ($48/t), respectively, for the Donimalai auction on 24 February 2025. List prices remained unchanged from the previous revision on 18 February. The auction witnessed bookings of 20,000 t of fines (Fe 58%) at INR 3,547/t ($41/t) against the base price of INR 3,537/t ($41/t), while only 48,000 t of lumps (10-40 mm, Fe 58%) were booked at INR 4,234/t ($49/t) against the base price of INR 4,224/t ($49). Prices are on ex-mines basis, including royalty, DMF & NMET.
The Karnataka Mineral Rights and Mineral Bearing Land Tax Bill 2024 continued to be the most pressing issue within the domestic minerals industry. The potential implications of the bill have raised concerns about its severe impact on mineral taxes, prices, and the broader economic landscape. In the same line, a major Bellary-based buyer said, “Iron ore prices are currently elevated, resulting in reduced trade activity. Additionally, there is a lack of clarity surrounding the MRT, though some insight is anticipated in the upcoming fiscal year, starting in April”.
Rationale
- One (1) trade via e-auction was recorded in this publishing window and was considered under T1 trade, receiving 50% weightage.
- Fifteen (15) offers and indicative prices were reported, out of which thirteen (13) were considered as T2 trades. Hence, this category was accorded 50% weightage.
Karnataka iron ore sales scenario (21-27 February 2025)
Outlook
Domestic low-grade iron ore prices are expected to remain volatile in the region as one of the miner from the region mentioned BigMint, “Rumors 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 monitoring the developments related to the MRT bill.
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