BigMint: Karnataka low-grade iron ore prices remain stable in absence of active trades

• Offers, trades absent amid non-availability of material
  
  
• Few major miners' ECs exhausted towards fiscal year end
  
  
• Weak exports also weigh on domestic market
  
  

Domestic low-grade iron ore fines (Fe 57%) prices remained unchanged this week in Karnataka's Bellary. BigMint's weekly index for low-grade iron ore fines (Fe 57%) stood at INR 3,600/t ($43/t) ex-mines Bellary.

The absence of trades amid non-availability of material owing to some miners' EC's getting exhausted towards the fiscal year (FY'24)-end weighed on Karnataka's low-grade iron ore prices, BigMint noted. Meanwhile, no sales were reported for low-grade material via the auction mode as well.

"Material availability is tight in the region as most of the miners have finished their ECs, leading to material shortage," mentioned a Bellary-based seller.

"We are currently not offering in the domestic or export markets," another source informed BigMint.

Meanwhile, BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index remained stable w-o-w at $83/t FOB east coast on 15 February, 2024. No deals were recorded from India for low-grade fines export amid the absence of buyers.

The seaborne market for Indian iron ore fines remained poor amid the Chinese New Year (CNY) holidays due to which buyers and steelmakers remained away from the market. There was no demand witnessed in the seaborne market.

Rationale:

• No trade was recorded in this publishing window and was accorded 0% weightage.
  
  
• Thirteen (13) offers and indicative prices were reported, out of which ten (10) were considered as T2 trades receiving 100% weightage.
  
  

Karnataka iron ore sales scenario (9-15 Feb'24)

Outlook

Domestic low-grade iron ore prices and trades in Karnataka might remain under pressure due to current market fundamentals and the ongoing Chinese holidays.