India: Over 90,000 t of iron ore, pellets booked in NMDC’s auctions

• Kirandul slime attracts aggressive bids
• Donimalai fines auction sees full booking

NMDC’s iron ore and pellet auctions conducted across Chhattisgarh and Karnataka during 25-27 May 2026 reflected divergent buying sentiment across product categories amid cautious market conditions.

Iron ore slime fetches premiums

In Chhattisgarh, iron ore slime auctions witnessed relatively strong participation. At Bacheli, NMDC successfully sold 20,000 t of iron ore slime (Fe 56%) at a premium of INR 375/t over the base price of INR 1,450/t, indicating moderately strong demand from sponge iron and sinter plant consumers. The material was offered with truck-only evacuation.

Similarly, the Kirandul slime auction held on 26 May recorded healthy bidding interest. NMDC sold the entire 21,500 t (Fe 59.5%) offered quantity at a premium of INR 1,900/t over the base price of INR 1,700/t on FOR Kirandul basis. The sharp premium suggests stronger buyer interest for lower-grade raw material amid tight availability in certain pockets and expectations of stable near-term consumption from domestic steelmakers.

Auctions from Karnataka record mixed response

NMDC auctioned 10,000 t of pellets (Fe 63%) from its Donimalai plant in Karnataka on 27 May 2026. Buyers booked 4,000 t of pellets at a base price of INR 9,200/t. Prices are ex-plant (FOT), excluding taxes. The weak response indicates cautious procurement activity from buyers amid pressure on pellet margins and softer downstream steel demand.

At the Donimalai iron ore auction in Karnataka, market response remained mixed. NMDC sold the entire 48,000 t of Fe 56% fines at the base price of INR 2,566/t on ex-mines basis, reflecting limited but stable demand for lower-grade fines. In contrast, the entire 48,000 t lump ore quantity remained unsold, highlighting weak appetite for lump material amid subdued premiums and lower blast furnace-based demand.

NMDC prices remained exclusive of royalty, DMF, and NMET charges.