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Karnataka: Iron ore index inches down, market awaits NMDC's price revision

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Fines/Lumps

BigMint Bureau

187 Reads

4 Jul 2024, 19:48 IST

Karnataka: Iron ore index inches down, market awaits NMDC's price revision

Absence of trade activities puts pressure on domestic prices

Pellet prices in Bellary fall by INR 100/t

Domestic low-grade iron ore fines (Fe 57%) prices edged down w-o-w by INR 50/t ($1/t) in Karnataka's Bellary. BigMint's weekly index for low-grade iron ore fines (Fe 57%) stood at INR 3,250/t ($39/t) ex-mines Bellary (excluding taxes). Domestic iron ore prices remained under pressure amid muted trade activities and bearish market sentiment, BigMint noted.

As the monsoon season approaches, the market has notably slowed, with a significant decrease in trading activity. A market participant said: "The buyers are cautious for fresh deals in July following the fluctuation in pellet and other downstream steel commodity prices. Major steelmakers in the region are awaiting price stability, resulting in reduced trade activities this week. The drop in pellet prices by INR 100/t ($1-1.2/t) w-o-w has also put pressure on iron ore fines prices in the Bellary region."

Rationale:

No trade was recorded in this publishing window, hence, accorded 0% weightage.

Fifteen (15) offers and indicative prices were reported, out of which eleven (13) were considered as T2 trades receiving a 100% weightage.

Market highlights from Karnataka:

KSMCL's auction receives low participation: KSMCL had an auction for 164,000 t of iron ore from its Subbrayanahalli mines in Bellary, Karnataka on 28 June, 2024. According to sources, only 8,000 t of fines (Fe 63.22%) got booked at base price of INR 4,654/t while 36,000 t of lumps (10-40 mm, Fe 62.36%) got booked at base price of INR 4,777/t. Prices are on ex-mines basis, excluding royalty, DMF, and NMET.

Pellet prices inch down in Bellary: Pellet (Fe63%) prices in Bellary, Karnataka fell by INR 100/t to INR 10,050/t exw w-o-w.

Karnataka iron ore sales scenario (28 Jun-4 July, 2024)

Outlook

Domestic low-grade iron ore prices are likely to remain volatile, with uncertainty in price movement. However, the approaching monsoon also keeps prices under pressure.