India: Low-grade iron ore fines prices in Karnataka remain supported

Domestic low-grade iron ore fines (Fe 57%) prices remained stable this week in Karnataka's Bellary. Shortage of ore in the region and active participation in NMDC's Kumaraswamy auction with high bids received kept low-grade ore prices supported, SteelMint notes.

SteelMint's weekly index for low-grade iron ore fines (Fe 57%) stands at INR 3,550/tonne (t) ex-mines Bellary, unchanged w-o-w.

"Iron ore prices are on the higher side amid high bids received in most of the recent auctions and active trade via direct sales", a Karnataka-based miner said.

Rationale:

• No trade was recorded in this publishing window, hence, accorded 0% weightage.
  
  
• Eleven (11) offers and indicative prices were reported, with ten (10) being considered as T2 trades and receiving 100% weightage.
  
  

Factors supporting prices:

• Hike in e-auction bids: NMDC concluded an auction for 378,000 t of iron ore from its Kumaraswamy mines on 25 October. 102,000 t of lumps (10-40 mm, Fe 60.01-63.17%) was booked at INR 4,551-5,352/t against the base price of INR 3,171-3,712/t, while 378,000 t of fines (Fe 58.59-62.53%) was booked at INR 2,831-4,923/t against the base price of INR 2,731-3,363/t. Notably, bid prices for lumps and fines rose by around INR 1,640/t and INR 1,560/t respectively.
  
  
• Stability in pellet prices: SteelMint's bi-weekly index for pellet (Fe 63%) prices in Bellary remained stable w-o-w at INR 10,550/t exw on 23 October. However, limited movement was recorded in the region during the festive season.
  
  

Karnataka iron ore sales scenario (19-26 Oct'23)

Outlook

Domestic low-grade iron ore prices in Karnataka are expected to remain supported in the near term amid tight supply of low-grade material in the region.