- Rising steel, sponge iron prices support iron ore prices
- Trade remains muted, auction activity thins notably
Domestic iron ore prices in Karnataka’s Bellary region continued to move in a narrow range, reinforcing the prevailing cautious sentiment across the market. Prices of low-grade iron ore fines (Fe 57%) remained unchanged, with BigMint’s weekly index assessed at INR 2,700/t ($30/t) ex-mines, excluding taxes, as of 29 January, flat compared to the previous week. However, Fe 62% iron ore prices edged down by INR 50/t ($0.5/t) to INR 5,050/t ($55/t) ex-mines, inclusive of taxes amid subdued trading activity.
Although recent gains in downstream steel and sponge iron prices lent some support to raw material prices, overall sentiment in the iron ore market has yet to witness any meaningful improvement. Participants noted that while high-grade material remained scarce and demand persists, this tightness has not translated into stronger pricing momentum, keeping the market largely stagnant.
Auction activity during the week was notably thinner compared to the previous week, signalling a broader wait-and-watch approach from sellers as well. Market participants are now closely eyeing the upcoming NMDC Donimalai auction, which is widely expected to act as a key trigger and provide much-needed clarity on near-term price direction. The reduced number of auctions clearly reflects sellers’ reluctance to commit amid uncertain market cues.
Echoing this sentiment, a Bellary-based miner stated, “Any hike will only be possible if NMDC revises its prices upward. Until then, prices are likely to remain unchanged.”
Another miner from the region told BigMint, “Market sentiment for raw materials is still weak. Given the current conditions, we are firmly in wait-and-watch mode.”
Rationale
- Zero (0) trade via e-auction was recorded for Fe 57% in this publishing window. 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 inch up by INR 100/t ($1/t) w-o-w in Bellary: Prices of sponge iron (CDRI) in Bellary edged up by INR 100/t ($1/t) w-o-w to INR 26,500/t ($288/t), backed by improved demand from steel manufacturers and rising raw material costs. Buying interest strengthened as steelmakers stepped up procurement to cover near-term requirements, while elevated input prices continued to influence offers. Additionally, pellet-based DRI prices moved higher, providing further support to the overall DRI market.
Karnataka iron ore sales scenario (23 -29 January 2026)
Outlook
Low-grade iron ore prices in Karnataka are likely to remain stable in the coming week, with trading activity likely to stay subdued until clearer price signals emerge. The upcoming NMDC Donimalai auction will be closely monitored as a key reference point for price discovery and sentiment. Until then, both buyers and sellers are likely to maintain a wait-and-watch approach, keeping iron ore prices largely stable amid limited auction activity and uncertain demand cues.
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