India's dolomite market is expected to see prices soften in August 2025, with improvements to be made to supply conditions in historically high-producing areas, even though demand from main consuming industries such as cement and steel remains strong.
One major part of the story comes from Rajasthan, which just announced an amnesty to operators of minor mineral leases. The amnesty allows current leaseholders who have a lapsed permit or who owe dues to regularize their operations through a title deed by paying 20% of their principal amount owing, with no other payments or penalties. Industry sources expect that many inactive or financially restricted dolomite mines may commence extracting dolomite by paying the regularization fee. Since Rajasthan is a principal dolomite-producing area for northern India cement and steel manufacturers, it is expected that over the next few months, local and regional supply will improve as a direct result of the amnesties being issued.
Moreover, the long-standing and often adversarial issue of boundary rationalization in the Sariska Tiger Reserve in Alwar district has begun to gain steam. The Supreme Court of India has been processing recommendations to reestablish the Critical Tiger Habitat boundaries. If accepted by the National Board of Wildlife, it seems possible that employing these new boundaries will allow for the reopening of dolomite and marble mines. While the reopening of any mines depends on environmental clearances, being able to re-establish a key supply channel has been beneficial in terms of emerging company sentiment about medium- to long-term outlook.
In another regard, in Gadchiroli, Maharashtra, the creation of a new District Mining Authority is regarded as a structural reform to "streamline permissions" and attract investment into mineral exploitation, dolomite included. This could position central India, over time, as a new supply point to complement Rajasthan.
Demand-side indicators remain solid, as cement production rose 11.7% YOY in July, up from 8.2% in June. Steel production grew 12.8% in July, again indicating positive momentum in India's infrastructural and housing sectors. Fertilizer production also exhibited a small recovery, at 2% above its June level. The monsoon season has taken its toll on construction activity (especially rural and infrastructural works) and provided some respite for dolomite prices in the short term.
Cement prices appear to be flat in August relative to July levels but have appreciated YOY. Analysts expect dolomite prices to be eased, for whoever uses dolomite in cement, steel, or fertilizer products, if supply-side conditions are expected to ease in Rajasthan and Maharashtra.
As per ChemAnalyst, Dolomite prices are anticipated to ease in August, as Rajasthan’s amnesty scheme and upcoming mining reforms might boost supply, balancing continued demand from the cement and steel sectors.
