India: Low-grade iron ore fines prices in Karnataka continue to remain flat w-o-w

• Most auctions remain unsold except for KSMCL
• Subdued demand seen from sponge iron and steel

Domestic low-grade iron ore fines (Fe 57%) prices in Karnataka’s Bellary region continue to remained steady this week also, with BigMint’s weekly index assessed at INR 3,150/tonne (t) ($36/t) ex-mines (excluding taxes), flat w-o-w. Similarly, the Fe 62% fines index stood at INR 5,250/t ($59/t) ex-mines Bellary (including taxes), unchanged w-o-w. Trade through e-auction were recorded for high-grade material.

The shortage of high-grade ore has been a concern factor sustaining price stability. Limited availability, forcing buyers to buy lower-grade material at higher costs. A Bellary-based buyer told BigMint, “High-grade demand is there, but due to the shortage, people are forced to use low-grade material, which increases costs significantly.”

Activity from miners remained extremely limited this week, with most auctions going unsold, keeping the market in a muted and cautious state. A Bellary-based miner added, “Buying activity is expected to pick up post festival. Once production resumes at normal levels, activeness in the market will also resume from both buyer and seller. Until then, the market remain subdued with minimal transactions.”

Rationale

• No trade was recorded for Fe 57% in this publishing window, and hence, the T1 trade category was accorded 0% weightage.
• Fourteen (14) offers and indicative prices were reported, out of which eleven (11) were considered as T2 trades. These were accorded 100% weightage.

Key market drivers

• KSMCL auction receives decent response:KSMCL conducted an auction for 199,996 t of iron ore from its mines in Bellary, Karnataka, on 30 Sep’25. Out of the offered quantity, 56,000 t was booked consisting of 28,000-t lumps (10-40 mm, Fe 62.27-63.03%) at INR 5,151-5,212/t and 28,000 t fines (Fe 61.51-62.54%) at INR 4,560-4,636/t (base prices). Prices are exclusive of royalty, DMF, and NMEDT.
• Bellary C-DRI prices down w-o-w: Sponge iron (CDRI) prices in Bellary, Karnataka dipped by INR 300/t ($3/t) w-o-w to INR 26,000/t ($293/t). Trade activity stayed sluggish amid limited buyer inquiries and cautious sentiment, with the overall market remaining quiet as participants continued to adopt a wait-and-watch stance.

Outlook

Karnataka iron ore prices are expected to remain largely rangebound in the near term, underpinned by persistent high-grade shortages and limited mining activity. However, the festive season has further added the slowness in the market.