- Muted buying activity limits market movement
- Limited participation in NMDC auctions
Domestic low-grade iron ore fines (Fe 57%) prices in Karnataka’s Bellary region fell by INR 50/t ($0.55/t), with BigMint’s weekly index at INR 3,000/t ($33/t) ex-mines, excluding taxes, as of 11 December, compared to the previous assessment on 4 December. In contrast, prices of Fe 62% remained unchanged at INR 5,200/t ($59/t) ex-mines, inclusive of taxes, showing no w-o-w change.
Weak demand from downstream sectors, coupled with sluggish activity in the sponge iron industry, continues to weigh heavily on iron ore prices. The market saw minimal movement this week, as buyers remained largely inactive amid the cautious overall sentiment and muted procurement interest.
High-grade material, however, continues to attract strong demand due to its scarcity, preventing any significant price decline. With only a handful of miners offering premium-grade ore, the market faces tight supply conditions. NMDC’s latest offerings, mostly of lower grade, further highlight the shortage of high-quality material.
Reflecting on recent trends, a Bellary-based seller remarked, “In the Bellary region, the overall grade quality is deteriorating,” signaling growing concerns over declining ore grades.
Another local seller added, “Market sentiment is extremely weak. Small players are mostly sidelined, and buying activity is very limited. Subdued sponge iron rates are offering no support, keeping the market stagnant.”
On the buyer side, a Bellary-based participant commented, “We are sticking to pellets for now, as lumps have become prohibitively expensive.”
Highlighting the market tightness, NMDC conducted an auction of 48,000-t lumps (10-40 mm, Fe 55%), which failed to attract any bids against a base price of INR 2,850/t, leaving the entire lot unsold.
Rationale
- One (1) trade via e-auction was recorded for Fe 57% in this publishing window and were not taken into consideration. Hence, the T1 trade category was accorded 0% weightage.
- Fifteen (15) offers and indicative prices were reported, out of which thirteen (13) were considered as T2 trades. These were accorded 100% weightage.
C-DRI prices drop by INR 500/t ($6/t) w-o-w in Bellary: Prices of sponge iron (CDRI) in Bellary fell by INR 500/t ($6/t) w-o-w to INR 24,700/t ($274/t). Market sources indicated that prices declined due to subdued procurement from steel manufacturers. The demand for rebar in the local market has remained weak, which has directly impacted the requirement for raw materials like C-DRI. As a result, manufacturers have reduced their buying activity. Furthermore, ongoing logistics issues particularly disruptions in transportation routes toward the western region of the country have created additional hurdles for material movement. This has limited trade volumes and contributed to the overall downward pressure on C-DRI prices in the Bellary region.
Karnataka iron ore sales scenario (5-11 December 2025)
Outlook
Iron ore prices in Karnataka are likely to remain under pressure over the course of December due to weak demand from downstream sectors and subdued sponge iron activity. High-grade material will continue to see tight supply supporting its prices, while logistics challenges and muted buying interest could further weigh on prices.
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