India: Low-grade iron ore fines prices in Karnataka remain stable w-o-w

• Shortage of high-grade material seen in market
• Supply concerns amid monsoon support offers

Domestic low-grade iron ore fines (Fe 57%) prices remained firm this week in Karnataka’s Bellary. BigMint’s weekly index for low-grade iron ore fines (Fe 57%) stood at INR 2,900 tonne/t ($34/t) ex-mines Bellary (excluding taxes), stable, w-o-w.

And the Fe 62% fines index was assessed at INR 5,000/t ex-mines Bellary, including taxes, although no transactions were reported at this price point. A prevailing shortage of high-grade material in the Bellary market has led to increased demand, further supporting price stability despite limited trade activity.

Need-based procurement, material shortage amid heavy monsoons and increment in low-grade export markets have kept domestic prices supported. In the same line, a Bellary-based miner told BigMint, “Offers remain stable as our current focus is on dispatching previously booked bulk orders. Despite the ongoing monsoon, both production and sales are progressing smoothly, driven by active demand-unlike previous years.”

Meanwhile, NMDC maintained price stability by keeping its base price unchanged in the latest auction.
This move reflects a cautious approach amid prevailing market conditions.

Rationale

• No trade was recorded for Fe 57% in this publishing window, and hence, the T1 trade category was accorded 0% weightage.
• Fifteen (15) offers and indicative prices were reported, out of which eleven (11) were considered as T2 trades. These were accorded 100% weightage.

Key Market Drivers

• NMDC’s auction receives decent response: NMDC’s recent iron ore auctions from its Donimalai and Kumaraswamy mines received a healthy response. On 15 July, Donimalai’s auction saw full booking of 20,000-t lumps (10-40 mm, Fe 56%) at INR 3,590/t ($42/t) and 8,000-t fines (Fe 56%) at INR 2,867/t ($33/t). Similarly, the 16 July auction from the Kumaraswamy mines recorded sales of 10,000-t lumps (10-20 mm, Fe 61.12%) at INR 4,572/t ($53/t) and 116,000-t fines (Fe 57.79-58.76%) at INR 3,089-3,342/t ($36-39/t). All prices are on an ex-mines basis and include royalty, DMF, and NMET.
• Low-grade export prices rise w-o-w: BigMint’s weekly Indian low-grade iron ore fines (Fe 57%) export index rose by $1.5/t w-o-w to $64.5/t FOB east coast on 17 July supported by active export enquiries and a rise in global iron ore prices. Exporters reported improved market participation.
• Bellary C-DRI prices down w-o-w: In contrast, prices for sponge iron (CDRI) in Bellary declined by INR 150/t ($2/t) w-o-w. The drop was attributed to muted buying interest in the semi-finished segment, as most buyers had already stocked sufficient material earlier.

Karnataka iron ore sales scenario (11-17 July 2025)

Outlook

Low-grade iron ore prices in Karnataka are likely to remain stable in the near term, underpinned by steady domestic demand and active export inquiries amid firming global prices. Ongoing supply constraints due to monsoon-related disruptions and limited availability of high-grade material are expected to support price levels. However, the recent decline in sponge iron prices may exert downward pressure on low-grade ore prices going forward.