Karnataka: Low-grade iron ore prices edge up w-o-w amid supportive market sentiments
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- Active trades seen in e-auctions, direct sales
- Iron ore export index, DRI prices remain supported
Domestic low-grade iron ore fines (Fe 57%) prices witnessed an increase this week in Karnataka's Bellary. BigMint's weekly index for low-grade iron ore fines (Fe 57%) stood at INR 3,200/t ($38/t) ex-mines Bellary (excluding taxes), a marginal w-o-w rise of INR 100/t ($1/t).
Active trades via both e-auction and direct sales along with supportive sentiments from low-grade fines exports and in the sponge iron (CDRI) market, BigMint notes.
Rationale:
- One (1) trade of 40,000 t was recorded in this publishing window and was accorded with 50% weightage.
- Fifteen (15) offers and indicative prices were reported, out of which ten (10) were considered as T2 trades receiving a 50% weightage.
Factors supporting low-grade offers:
- NMDC iron ore auctions receive active response: NMDC conducted auctions of around 220,000 t of iron ore from its Donimalai and Kumaraswamy mines from 2-8 May 2024. According to sources, the auctions received active participation and the entire quantity of offered material was booked at higher price levels compared to base prices. Meanwhile, a 24,000 t iron ore auction has been scheduled by the miner from its Donimalai mines on 15 May.
- Low-grade export index stays firm w-o-w: BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index was largely stable w-o-w at $66/t FOB east coast on 9 May. However, most seaborne buyers are not available in the market as Chinese steelmakers are still in holiday mood which has kept trading subdued.
- Bellary CDRI prices rise w-o-w: Sponge iron (CDRI) prices in Bellary, Karnataka rose by INR 900/t ($11/t) w-o-w. Prices witnessed an increase amid hike in semi-finished steel prices and decent trade activity.
Karnataka iron ore sales scenario (2-9 May, 2024)
Outlook
Domestic low-grade iron ore prices are expected to remain supported amid supportive export index and active trades due to improved supply of raw materials.