Karnataka: Low-grade iron ore fines prices rally continues tracking NMDC hike

Domestic low-grade iron ore fines (Fe 57%) prices in Karnataka stood at INR 3,450/tonne (t) ex-mines this week, a significant w-o-w increase of INR 250/t, SteelMint's assessment shows.

Shortage of low-grade material in the region and NMDC Kumaraswamy's recent price hike of around INR 150/t for its iron ore auction have supported iron ore fines prices, SteelMint notes.

"Shortage of material in the Bellary region due to expiry of forest clearance of one of the leading miner and high bidding in the recent auctions has resulted in the continuous price hike", mentioned a Bellary-based source.

Rationale:

• No trade was recorded in this publishing window and hence given 0% weightage.
  
  
• Eleven (11) offers and indicative prices were reported, with nine (9) of them being considered as T2 trades and receiving a 100% weightage.
  
  

Karnataka iron ore sales scenario (29 Sep-5 Oct'23)

Outlook

Domestic low-grade iron ore prices in Karnataka are expected to remain supported in the near term amid ongoing material shortage. Also, a few miners expect prices to rise further owing to supportive sentiments in the region.