- NMDC’s reduced auction activity weighs on overall sales
- Monsoon-driven disruptions, pending dispatches drag down volumes
Karnataka’s iron ore e-auction sales declined 55% m-o-m to 481,250 tonnes (t) in August 2026 from 1.07 million tonnes (mnt) in July, according to BigMint data, as multiple supply-side and logistical factors restricted market activity. Lower fresh offerings by major miners, monsoon-related dispatch disruptions, pending lifting of previously auctioned material, and the absence of KSMCL auctions were the key factors behind the sharp decline. The availability of auction material was further impacted as miners remained cautious in offering fresh quantities amid ongoing dispatch constraints.
Of the 922,430 t of iron ore offered in August, around 481,250 t was booked, comprising approximately 288,000 t of fines and 193,250 t of lumps. The entire fines quantity was sold by NMDC, while other miners largely offered lumps. The sharp reduction in offerings from major miners, particularly NMDC, had a significant impact on total auction volumes. NMDC conducted only one auction from Kumaraswamy during August, while KSMCL remained absent, resulting in substantially lower fresh availability compared with the previous month.
Pending lifting of earlier-auctioned material was another major factor limiting fresh purchases. Buyers were still awaiting dispatches against previously booked quantities, particularly amid monsoon-related transportation and mining disruptions. This reduced their ability to participate aggressively in subsequent auctions and encouraged buyers to remain selective about taking additional material. Consequently, lower fresh availability and slower dispatches together weighed on overall auction turnover.
Grade availability also emerged as a major constraint on auction sales. While demand for high-grade iron ore remained strong from sponge iron and steel producers, buyers showed limited interest in lower-grade material offered by miners. High-grade ore remained scarce in Karnataka and continued to command higher prices, with buyers actively looking to secure premium-grade material. Auctions offering high-grade lumps received comparatively better response, whereas lower-grade lots witnessed weak participation and remained partly or fully unsold.
The sharp fall in auction bookings therefore does not indicate a broad-based deterioration in downstream demand. Sentiment across the sponge iron and steel sectors remained relatively supportive during August, but this failed to translate into higher auction sales due to the mismatch between available material and buyer requirements. Buyers were willing to purchase suitable high-grade material but remained reluctant to take lower-grade ore at prevailing prices, particularly when the economics of beneficiation or blending were less attractive.
NMDC retains top position
NMDC remained the largest seller in Karnataka’s e-auction market, although its sales declined 23% m-o-m to around 340,000 t in August from 441,439 t in July. The miner conducted only one auction from its Kumaraswamy mines during the month, significantly reducing its contribution to fresh auction volumes. Monsoon-related dispatch issues and pending lifting of previously auctioned quantities further weighed on its sales.
NMDC’s August bookings comprised around 288,000 t of fines and 52,000 t of lumps. Kumaraswamy mines accounted for the fines bookings, while the remaining lumps were sold from Donimalai mines. As NMDC was the only miner offering fines during the month, its lower auction activity had a direct and significant impact on overall Karnataka auction volumes.
Other miners record mixed performance
SMIORE emerged as the second-largest seller, with sales falling sharply to around 66,000 t in August from 217,320 t in July. Despite offering around 246,180 t, only a limited quantity was booked, indicating weak buyer acceptance of the grades offered. The subdued response highlights the market’s strong preference for higher-grade material.
Sri Kumaraswamy Minerals Pvt. Ltd. ranked third, selling around 32,000 t of high-grade lumps, with sales remaining broadly stable m-o-m. The relatively better response to its material reflected continued demand for high-grade ore in the region.
Vedanta’s sales declined marginally to around 25,000 t from 26,000 t in July, despite offering hematite and siliceous grades.
R Praveen Chandra sold around 18,250 t of lumps during the month.
Meanwhile, new miner HG Rangangaouda conducted its third auction, offering 10,000 t of lumps, but the entire quantity remained unsold, further reflecting selective buying interest and the market’s preference for specific grades.
Fines prices remain firm while lumps rise
Iron ore prices showed mixed movements in August. The monthly weighted average price of Fe 60% fines was steady m-o-m at INR 3,650/t, while Fe 63% lumps rose by INR 300/t to INR 5,100/t. Prices are exclusive of taxes. The rise in lump prices was supported by limited availability of high-grade material, strong buyer preference, and restricted fresh offerings amid monsoon-related disruptions, whereas fines prices stayed stable as demand and availability remained broadly balanced, with cautious buying and pending dispatches capping upward movement.
Outlook
Karnataka’s iron ore e-auction sales are expected to remain largely stable or increase slightly in September, depending on the extent of fresh offerings and improvement in dispatches following the monsoon. High-grade material is likely to remain in strong demand and command a premium, while lower-grade availability could continue to face weak buyer acceptance. A meaningful recovery in auction volumes will largely depend on increased participation from major miners, particularly NMDC and KSMCL, along with clearance of pending dispatches.
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