- NMDC’s sales drop 27% m-o-m in Jul’25
- Prices rise on tight high-grade ore supply
Iron ore e-auction sales volumes in Karnataka fell by 30% m-o-m to 0.88 million tonnes (mnt) in July 2025 against 1.24 mnt in June 2025, as per BigMint’s data. Of the total volumes sold in July, fines accounted for 507,000 tonnes (t) and lumps 368,400 t.
The decline was primarily driven by muted buying interest from steelmakers amid subdued demand in the semi-finished and finished steel segments. Seasonal disruptions from the ongoing monsoon further impacted mining operations and logistics, restricting availability and slowing procurement. Additionally, market volatility in the steel sector encouraged a cautious purchasing approach, contributing to the drop in auction volumes.
NMDC’s sales decline
National Mineral Development Corporation (NMDC), India’s largest iron ore miner, sold 691,000 t of iron ore from Karnataka via auctions in July 2025. This volume, comprising 420,000 t of fines and 271,000 t of lumps, marks a 27% decrease compared with 944,000 t in June 2025.
Performance of other miners
Karnataka State Minerals Corporation Limited (KSMCL) emerged as the second-leading miner, selling 52,000 t of iron ore in July. The volume, which comprises 48,000 t of fines and 4,000 t of lumps, is lower by 28% m-o-m as compared to 72,000 t in June.
Vedanta sold 48,000 t of iron ore in July, after failing to secure buyer participation in the previous month’s auction.
Sandur Manganese and Iron Ore (SMIORE) recorded 35,000 t of iron ore sales in July, comprising 11,000 t of fines and 24,000 t of lumps. Sales fell by a sharp 82% m-o-m from 197,000 t in June.
SKMEPL sold 28,000 t of fines in July as compared to 12,000 t of lumps in the previous month.
R Praveen Chandra sold 15,400 t of lumps in July compared to nil in June.
BKG Mining sold 6,000 t of lumps in July, while 4,000 t of the same were sold in June.
Iron ore prices increase m-o-m
The monthly weighted average prices of iron ore fines and Fe 63% lumps increased m-o-m in July. Weighted average prices of Fe 60% fines rose by INR 150/t m-o-m to INR 3,950/t and of Fe 63% lumps went up by INR 200/t m-o-m to INR 5,100/t. Prices are exclusive of taxes.
July witnessed a price escalation driven by the constrained availability of high-grade material in the region. Persistent supply tightness continued to underpin the upward pricing momentum.
Outlook
Karnataka’s iron ore auctions are expected to maintain their current pace on the back of the receding monsoon in September. However, weak demand for semi-finished and finished steel is likely to cause volatility.
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