India: Karnataka low-grade iron ore prices edge up amid supply concerns
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- Supply-demand concerns support offers
- Buyers resist to purchase at higher levels on falling export prices
- Trades remain on lower side
Domestic low-grade iron ore fines (Fe 57%) prices witnessed an increase this week in Karnataka's Bellary. BigMint's weekly index for low-grade iron ore fines (Fe 57%) stood at INR 3,500/t ($42/t) ex-mines Bellary (excluding royalty, DMF and NMET), a w-o-w increase of INR 100/t ($1/t).
Some offers for Fe 57% fines were also heard at higher levels of INR 4,000-4,200/t, excluding taxes as miners were not ready to sell at lower offers, taking advantage of their exhausting EC limits. However, no trades were reported at the above mentioned levels as buyers have kept themselves away from closing any deal.
Also, lower trades amid non-availability of material owing to some miners' ECs getting exhausted towards the fiscal year 2024 (FY'24)-end weighed on Karnataka's low-grade iron ore market.
"Offers have reached at higher levels amid supply-demand concerns," a source told BigMint.
On the contrary, a Bellary-based seller said, "Considering the situations in domestic and export market, prices have remained unchanged."
Meanwhile, BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index remained stable w-o-w at $74/t FOB east coast on 7 March, 2024. "Considering the situations in both the domestic and export markets, low-grade iron ore prices in the region are under pressure," said a Karnataka-based miner.
Rationale:
- No trade was recorded in this publishing window and was accorded with 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 (28 Feb-7 Mar'24)
Outlook
Domestic low-grade iron ore prices are expected to remain range-bound due to soft market trends amid fiscal year-end and ongoing supply tightness, considering it to be fiscal year end.
