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

• Tight supply restricts market activity
• NMDC reduces its base prices of lumps

Domestic low-grade iron ore fines (Fe 57%) prices in Karnataka’s Bellary region remained flat this week also, with BigMint’s weekly index assessed at INR 3,150/tonne (t) ($36/t) ex-mines (excluding taxes), stable 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.

The market is currently witnessing a shortage of high-grade iron ore material, which has helped prices maintain stability amid steady demand. The scarcity has created a cautious market environment where buyers are dependent on offers from select miners.

This week, some trade activity was recorded for these grades in e-auctions. However, participation remained limited, as only a handful of miners offered high-grade material, reflecting the overall shortage.

A Bellary-based miner told BigMint, “The firm trend in sponge iron prices has lent support to Karnataka’s iron ore market.” He added that while demand for high-grade ore remains healthy, availability is constrained, and persistent rains are further exacerbating logistical challenges.

National Mineral Development Corporation (NMDC), Karnataka, has released the base prices for its iron ore auction from the Donimalai mines on 25 September. Prices of fines (-10 mm, Fe 56%) remained unchanged at INR 2,989/t ($34/t), and those of lumps (10-40 mm, Fe 54%) were reduced by INR 610/t ($6/t) to INR 2,738/t ($31/t), respectively, from the last revision on 22 July. Prices are inclusive of royalty, DMF, and NMET.

Rationale

• One (1) trade was recorded for Fe 57% in this publishing window, which was not considered. Hence, the T1 trade category was accorded 0% weightage.
• Seventeen (17) offers and indicative prices were reported, out of which fourteen (14) were considered as T2 trades. These were accorded 100% weightage.

Key market drivers

• SMIORE auction receives decent participation: Sandur Manganese and Iron Ores (SMIORE) conducted an auction for 70,000 t of iron ore from Bellary, Karnataka, on 19 Sep’25, in which 27,000-t lumps (5-20 mm, Fe 54.2-57.3%) were booked at INR 3,480-4,510 against base prices of INR 3,290-4,510/t, 14,000-t (10-40 mm, Fe 56.1-57%) lumps were booked at INR 4,050-4,580/t against base prices of INR 3,990-4,340/t, and 16,000-t fines (Fe 56.8-58.5%) were booked at base prices of INR 3,193-3,664/t. Prices are inclusive of royalty, DMF, and NMEDT charges.
  
• Bellary C-DRI prices edge up w-o-w: Sponge iron (CDRI) prices in Bellary, Karnataka, inched up by INR 100/t ($1/t) w-o-w to INR 26,300/t ($297/t), as sellers held offers firm, citing that prices below this level would not cover their production and processing costs, leading to losses.

Outlook

Iron ore prices in Karnataka are expected to remain range-bound amid shortages in high-grade ore and logistical disruptions from rains. Firm sponge iron prices will continue to lend support, though NMDC’s price cut for lumps may cap upside. Auction activity and supply dynamics will play a key role in shaping short-term price trends.