Karnataka: Low-grade iron ore prices drop, market awaits NMDC's price revision
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- Falling export index weighs on domestic prices
- Trades continue to remain subdued
- Market awaits NMDC Donimalai auction
Domestic low-grade iron ore fines (Fe 57%) prices witnessed a drop this week in Karnataka's Bellary. BigMint's weekly index for low-grade iron ore fines (Fe 57%) stood at INR 3,300/t ($40/t) ex-mines Bellary, a fall of INR 200/t ($2/t), w-o-w. Domestic prices continued to remain under pressure amid bearish market sentiments prevailing in the export market and no active trades in the domestic market.
Some offers for Fe 57% fines were also heard at higher levels of INR 3,800-3,850/t, excluding taxes as miners were not ready to sell at lower offers, taking advantage of their exhausting EC limits. However, no trades were reported at the above-mentioned levels as buyers have kept themselves away from closing any deal.
"There are no active offers prevailing in the market. Current prices are only superficial ones," mentioned a Bellary-based buyer.
"We tried to procure low-grade iron ore (Fe 57%) but no one having the material to offer," another buyer from the region told BigMint.
Meanwhile, market participants in the state are waiting for NMDC's Donimalai iron ore auction to get a better price clarity and expecting a price drop followed by the miners' recent price drop announcement in Chhattisgarh (CG).
It is to be noted that NMDC CG, decreased list prices of iron ore on 21 March, 2024. The company has decreased prices of DR-CLO and fines by INR 250/t ($3/t), effective from 21 March, 2024. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 6,970/t ($84/t) and of iron ore fines (-10 mm, Fe 64%) at INR 5,060/t ($61/t). Prices are on FOR basis from Bacheli complex and include royalty, DMF and NMET charges.
On the other hand, BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index fell by around $3.5/t w-o-w to $58.5/t FOB east coast on 21 March, 2024. "Falling export index continues to put pressure on domestic prices," a seller told BigMint.
Rationale:
- No trade was recorded in this publishing window and was accorded with 0% weightage.
- Twelve (12) indicative prices were reported, out of which ten (10) were considered as T2 trades receiving 100% weightage.
Karnataka iron ore sales scenario (11-21 Mar'24)
Outlook
Domestic low-grade iron ore prices and trades in Karnataka are expected to remain under pressure due to exhausting EC limits towards fiscal year-end and bearish export market sentiment.
