State-owned and India’s largest iron ore miner NMDC, has cut the price of higher grade iron ore (lumps) by about 4 per cent and iron ore fines prices by 3 per cent for the month of July 201 according to officials.
“The company Board, in its meeting in Hyderabad decided to cut the lumps prices by about 3-4 per cent for the current month. Company has been consistently cutting its prices since October 2012.”said industry sources.
Domestic steel makers, those without captive iron ore mines, will be benefited the most due to the price reduction of iron ore lumps (having iron content of 62 per cent or above). Although market expectations were much higher.
After the price cut, iron ore lumps (6-40mm) would be available in the range between Rs 4,400 while fines (having iron content of more than 63 per cent) are currently being sold at Rs 2,510 per tonne.
Since October, NMDC, the largest domestic producer of iron ore has either reduced the iron ore prices on a monthly basis or kept them unchanged as demand has been subdued.
Recently private miners based in Odisha have also cut their offers by almost Rs 300-400 per tone in mid of June 2013 owing to poor demand from sponge iron manufacturers. Experts also claim increase availability of iron pellet in Indian market and falling iron ore price in global market have led NMDC to revise its offers.
NMDC reported to have produced 27.2 million tonnes of iron ore in FY 2012-2013 against 27.1 million tonnes in FY 2011-2012. NMDC is also the largest iron ore exporter from India, majorly supplying to Japanese and Korean steel mills on long term contract basis.