- NMDC dominates auction sales
- Iron ore prices rise across grades
Karnataka’s iron ore e-auction sales increased 31% m-o-m to 1.21 million tonnes (mnt) in September 2026 from 922,430 tonnes (t) in August, according to BigMint data. The rise was supported by improved downstream steel market sentiment, stronger sponge iron demand and increased raw material procurement. Better demand expectations encouraged steel and sponge iron producers to replenish inventories, supporting higher auction bookings during the month.
Of the 1.66 mnt of iron ore offered in September, approximately 1.21 mnt was booked, comprising 713,527 t of fines and 492,760 t of lumps. High-grade fines and lumps witnessed strong buying interest amid limited regional availability, as consumers prioritised higher-grade material to meet production requirements. The depletion of previously accumulated inventories also encouraged fresh procurement, extending buying interest to low-grade material and contributing to the overall increase in sales.
Market sentiment, however, remained mixed across individual auctions. While higher-grade material attracted competitive interest, buyers continued to exercise selectivity towards certain grades, with subdued responses reflecting price sensitivity and differences in material quality. Monsoon-related operational and logistical constraints also limited the availability of some grades, prompting consumers to secure suitable material wherever available.
Overall, September witnessed a notable improvement in Karnataka’s iron ore auction activity, supported by stronger procurement sentiment and the need to replenish stocks. However, the sustainability of this momentum will depend on downstream steel demand, sponge iron price movements and the availability of competitively priced material, with selective buying likely to persist across auctions.
NMDC sales surge; miner retains market leadership
NMDC remained Karnataka’s largest iron ore seller, with sales surging to approximately 916,000 t in September from 340,000 t in August. The miner sold around 624,000 t of fines and 292,000 t of lumps. Higher-grade offerings, coupled with limited regional availability of comparable material, strengthened buyer interest and significantly increased NMDC’s contribution to overall auction sales.
Other miners record mixed performance
SMIORE emerged as the second-largest seller, with sales rising to around 191,060 t in September from 66,000 t in August, supported by increased offerings of fines and lumps.
Karnataka State Minerals Corporation Ltd. (KSMCL) ranked third, recording sales of 65,527 t after no volumes were offered or sold in August. Higher auction volumes and strong demand for high-grade material supported the increase.
Sri Kumaraswamy Minerals Pvt. Ltd. ranked fourth, selling around 14,000 t of lumps, down m-o-m.
Vedanta’s sales declined to around 12,000 t in September from 25,000 t in August, despite offering hematite and siliceous grades.
R Praveen Chandra sold around 7,700 t of lumps during the month.
JSW offered 16,000 t of iron ore, but the entire volume remained unsold.
Iron ore fines and lumps prices rise m-o-m
Karnataka’s iron ore prices strengthened in September, supported by tighter availability of high-grade material and improved procurement activity. The monthly weighted average price of Fe 60% fines increased by INR 300/t ($3/t) m-o-m to INR 3,950/t ($42/t), while Fe 63% lumps rose by INR 100/t ($1/t) to INR 5,200/t ($55/t). Prices are exclusive of taxes.
High-grade lumps received support from limited availability, strong grade preference and restricted fresh offerings amid monsoon-related operational and logistical disruptions. Fines prices also increased on a monthly average basis, although ample availability in certain grades, cautious procurement and pending dispatches continued to limit further price gains.
Outlook
Karnataka’s iron ore e-auction sales are expected to remain stable to slightly lower in October as festive-related disruptions could moderate procurement activity. While depleted inventories and continued demand for high-grade material may support bookings, cautious purchasing, uneven downstream steel demand and expectations of subdued activity during the festive period could limit further growth in auction sales.
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