BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

Karnataka: Iron ore prices remain unchanged w-o-w despite limited trades

...

Fines/Lumps

BigMint Bureau

31 Reads

6 Feb 2025, 19:26 IST

Karnataka: Iron ore prices remain unchanged w-o-w despite limited trades

Miners prioritise dispatch of older inventory

Market awaits NMDC price revision, cut likely

Domestic low-grade iron ore fines (Fe 57%) prices remained flat this week in Karnataka's Bellary region despite muted trade activity. BigMint's weekly index for the same (Fe 57%) stood unchanged w-o-w at INR 2,900/tonne (t) ($33/t) ex-mines Bellary (excluding taxes).

Meanwhile, the Fe 62% fines index was assessed at INR 4,800/t ($55/t) ex-mines Bellary, including taxes. Additionally, some offers were noted at higher levels, that is INR 5,000-5,300/t ($57-61/t), due to a demand-supply mismatch in the region. However, no deals were concluded at these offers, as buyers were not yet ready to accept the increased prices.

According to sources, miners maintained stable pricing, with no major adjustments in offers. Momentum was subdued, with nil active trades, as miners prioritised dispatches of older inventory rather than initiating fresh sales, signalling a temporary market pause. A source informed BigMint that low-grade material is in limited supply in the merchant market, as miners do not have material of the required grade.

Meanwhile, the market is waiting for the base price revision of the National Mineral Development Corporation (NMDC) from Donimalai mines. A major buyer informed BigMint, "The market is relatively stable. We are expecting a reduction in offers by INR 200-250/t ($2-3/t)."

Rationale

Zero (0) trades were recorded in this publishing window, so T1 trade received 0% weightage.

Fourteen (14) offers and indicative prices were reported, out of which twelve (12) were considered as T2 trades. Hence, this category was accorded 100% weightage.

Karnataka iron ore sales scenario (31 January-6 February 2025)

Outlook

Domestic low-grade iron ore prices are expected to fluctuate amid the current market dynamics. Additionally, the market is closely monitoring the situation around the MRT bill. Participants expect certain clauses to be relaxed following a meeting with the governor, held on 29 January, which could provide relief.