India: Karnataka’s e-auction iron ore sales rebound 34% in May on pre-monsoon stockpiling

Prices held steady amid tight supplies in high-grade ores. Pre-monsoon stockpiling helped prices remain supportive.

E-auction iron ore output in Karnataka recovered by around 34% in May 2025 to 0.87 million tonnes (mnt), up from 0.65mnt in April, according to data from BigMint. The recovery came after two consecutive months of decline. Of the total sales in May, iron ore fines accounted for 480,000 mt – a sharp increase of 65% month-on-month, while lump ore increased by 10% month-on-month to 393,100 mt.

In May 2025, NMDC became the sole supplier of iron ore fines in the commercial market in Karnataka, according to sources collated by BigMint. The increase in e-auction output is largely attributed to pre-monsoon stockpiling by market participants, following a lacklustre trading period due to limited production in the previous months.

Major suppliers such as KSMCL, SKMEPL and Vedanta were notably absent from the e-auctions. SKMEPL opted for direct sales, KSMCL did not offer any products, and Vedanta – although present – contributed little due to low lump production and no supply of fines.

NMDC Leads With Sharp Increase in Offered Volume

The National Mineral Development Corporation (NMDC), India’s largest iron ore miner, sold around 764,000 tonnes of ore from Karnataka through auctions in May, up 139% from 320,000 tonnes in April. Of the total, 480,000 tonnes were fines (up 233% month-on-month) and 284,000 tonnes were lumps (up 61%).

Sandur Manganese and Iron Ores (SMIORE) sold 86,000 tonnes of lumps in May, down significantly by around 41% from 147,000 tonnes (including fines and lumps) sold in April. This was mainly due to the fact that the company did not offer fines to the commercial market. It also sold around 9,000 tonnes of fines through auctions.

Ramamurthy Praveen Chandra (R. Praveen Chandra) returned to the rankings as the third largest seller in May, recording sales of around 23,100 tonnes of lumps after being absent from the trade in April.

Iron Ore E-auction Prices Hold Stable on a Monthly Basis

The monthly weighted average e-auction prices for iron ore fines (Fe 60%) and lumps (10–40 mm, Fe 63%) remained stable on a monthly basis at INR 3,400/tonne (USD 40/tonne) and INR 4,900/tonne (USD 57/tonne), respectively. These prices are ex-works, excluding mining royalties, DMF and NMET.

E-auction iron ore prices remained stable amid concerns over supply shortages of high-grade ores, prompting buyers to bid higher, according to BigMint.

Outlook

E-auction iron ore output in Karnataka is expected to remain stable, driven by robust pre-monsoon storage activity. Miners who were absent in May have scheduled auctions in June, which is likely to further boost trading volumes.

Meanwhile, there is no update on the Mineral Resources Tax (MRT) Bill, creating uncertainty in the market.

Source: Mysteel