India: Karnataka's iron ore e-auction sales rise by 25% m-o-m in May'26 before monsoon onset

• Resumption of auction activity by NMDC boosts volumes
  
  
• Premium-grade ore remains key demand driver amid shortages
  
  

Iron ore e-auction sales in Karnataka climbed by 25% m-o-m in May 2026 to 0.65 million tonnes (mnt), compared to 0.52 mnt in April, according to BigMint data. Out of the total quantity sold, iron ore fines accounted for approximately 317,000 tonnes (t), while lumps stood at 337,350 t.

The increase in sales volumes was primarily driven by the resumption of auction activity by major miners, particularly NMDC, alongside improved procurement following subdued buying in April. Many consumers had remained on the sidelines during the previous month owing to fiscal year-end inventory adjustments and cautious purchasing strategies. As auction availability improved in May, buyers actively participated to replenish inventories before the monsoon.

The month also witnessed strong interest in high-grade iron ore, supported by limited availability across the region. Premium-grade material continued to attract aggressive bidding from end-users, helping boost overall auction volumes despite weak steel and sponge iron market fundamentals.

NMDC retains market leadership

NMDC Ltd. maintained its dominant position in Karnataka's e-auction market, recording sales of around 401,000 t in May, a sharp increase from merely 40,000 t in April. The sales comprised approximately 260,000 t of fines and 141,000 t of lumps offered across multiple auctions.

The significant rise was largely attributed to NMDC's first auction of FY'27, conducted on 26 May, which generated strong market participation. The availability of substantial volumes and quality material encouraged aggressive bidding from buyers, significantly lifting the state's overall auction sales during the month.

Other miners show mixed performance

Sandur Manganese and Iron Ores Ltd. (SMIORE) emerged as the second-largest seller, with sales declining to 75,650 t in May from 81,920 t in April. The drop was primarily due to lower buyer interest in relatively lower-grade material offered during the month.

Karnataka State Minerals Corporation Ltd. (KSMCL) ranked third, selling 72,000 t of iron ore, sharply down from 266,500 t in April. The sharp decline was largely due to the absence of attractive bulk offerings and weaker trader participation.

Vedanta Ltd. secured the fourth position, selling around 54,000 t of lumps, including haematite and siliceous grades, compared to 59,000 t sold in the previous month.

Meanwhile, Sri Kumaraswamy Minerals Pvt. Ltd. (SKMEPL) recorded a notable improvement, with sales rising to approximately 44,000 t from 16,000 t in April.

In contrast, R Praveen Chandra witnessed weaker sales, with booked volumes falling to 7,700 t from 22,105 t in the previous month.

Several other miners remained inactive during May, with some focusing on inventory accumulation and stock preparation for future auctions.

Iron ore prices remain stable m-o-m in May'26

Monthly weighted average prices of Fe 63% lumps and Fe 60% fines remained firm m-o-m in May. Weighted average prices of Fe 60% fines were steady at INR 3,100/t, while Fe 63% lumps remained stable at INR 4,000/t. Prices are exclusive of taxes. Stable pricing, coupled with improved auction availability, also supported higher sales volumes during the month.

Outlook

Karnataka's iron ore e-auction sales are expected to remain healthy in the coming months, supported by regular auction offerings from major miners and continued procurement by end-users. Sales volumes may particularly benefit if NMDC and other large miners maintain higher auction frequencies and offer sizeable quantities to the market. Meanwhile, demand for high-grade iron ore is likely to remain strong due to its limited availability and buyers' preference for it before the monsoon.