India: Low-grade iron ore fines prices remain stable in Karnataka despite limited trades

• Sponge iron, finished steel prices recover
  
  
• Offers stable amid mild uptick in demand

  
  
  

Domestic low-grade iron ore fines (Fe 57%) prices remained stable this week in Karnataka's Bellary. BigMint's weekly index for low-grade iron ore fines (Fe 57%) stood at INR 3,100/tonne (t) ($37/t) ex-mines Bellary (excluding taxes), steady w-o-w. However, the Fe62% fines index was assessed at INR 5,150/t ex-mines Bellary, including taxes, reflecting an increase of INR 150/t ($2/t) amid supply-demand disparities.

A gradual recovery in finished steel and sponge iron tags, alongside a modest uptick in demand, supported low-grade prices in the region. However, no active trades were recorded in this week.

Miners maintained steady pricing, with no adjustments in offers. Market activity was subdued, with minimal movement. Presently, miners are prioritising the dispatch of older inventory over initiating fresh sales, signalling a temporary market pause as they focus on clearing existing stocks.

Rationale

• No trade was recorded in this publishing window. This category was, thus, accorded 0% weightage.
  
  
• Nine (9) offers and indicative prices were reported, of which seven (7) were considered as T2 trades, receiving a 100% weightage.
  
  

Factor affecting Karnataka's low-grade prices

• Bellary's CDRI prices inch up w-o-w: Sponge iron (CDRI) prices in Bellary, Karnataka, rose INR 200/t ($2/t) w-o-w. An improvement in finished steel prices supported CDRI tags.
  
  
• Vedanta's auction receives active response: Vedanta conducted an auction for 20,000 t of lumps (10-40 mm, Fe 55.5%) from its A. Narrain mines in Karnataka on 12 November 2024. According to sources, the entire quantity of lumps was booked at INR 3,950/t against the base price of INR 3,750/t. Prices are on ex-mines/ex-lot basis and exclude royalty, DMF, and NMET.
  
  
• Bellary's pellet prices rise w-o-w: Pellet prices in Bellary, Karnataka, increased by INR 250/t ($3/t) w-o-w to INR 10,500/t ($124/t) exw. The hike in pellet offers follows rising sponge iron and finished steel prices.
  
  

Outlook

Domestic low-grade iron ore tags are expected to remain stable in the coming week, supported by improved demand from the finished steel and sponge iron (CDRI) markets, both of which saw modest price increases recently. Although trade activity remains limited, stable offers indicate solid underlying demand as miners prioritise clearing existing inventories.