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Price band for iron ore soon to curb volatility: Minister

IANS  |  New Delhi 

The central on Thursday said it will soon announce a pricing mechanism for iron ore that would set a price band within which the mineral price would be allowed to fluctuate.

"We have set up a committee on iron ore pricing, which will present its report in the next 15-20 days, at the most in a month's time," Minister of Steel Chaudhary Birendra Singh told BTVi in an interview.

"Thereafter, we'll fix certain benchmark pricing, so that there are no fluctuations," he said.

"If there is a benchmark, then variations up to 10-12 per cent is alright... but 30-40 per cent fluctuation is too much volatility," he added.

The does not want high volatility in the iron ore market and wants the mineral prices to be as competitive as possible for steel companies.

In a separate interview with the channel, Steel Secretary Aruna Sharma said: "State-run iron ore miner National Mineral Development Corporation Ltd (NDMC Ltd) needs to keep in mind the interest of its private steel making consumers while deciding on pricing."

"Our strength is our iron ore deposits, but we also have to look at the pricing process. It can't be so expensive that steel making itself becomes non-competitive," Sharma said.

"We have to look holistically at the complete value chain. Profits, yes... but no profiteering," she said.

"The NMDC has to come to a discipline and a system. Being a big player, their pricing will hit private players," she added.

--IANS

bc/nir/dg

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Price band for iron ore soon to curb volatility: Minister

The central government on Thursday said it will soon announce a pricing mechanism for iron ore that would set a price band within which the mineral price would be allowed to fluctuate.

The central on Thursday said it will soon announce a pricing mechanism for iron ore that would set a price band within which the mineral price would be allowed to fluctuate.

"We have set up a committee on iron ore pricing, which will present its report in the next 15-20 days, at the most in a month's time," Minister of Steel Chaudhary Birendra Singh told BTVi in an interview.

"Thereafter, we'll fix certain benchmark pricing, so that there are no fluctuations," he said.

"If there is a benchmark, then variations up to 10-12 per cent is alright... but 30-40 per cent fluctuation is too much volatility," he added.

The does not want high volatility in the iron ore market and wants the mineral prices to be as competitive as possible for steel companies.

In a separate interview with the channel, Steel Secretary Aruna Sharma said: "State-run iron ore miner National Mineral Development Corporation Ltd (NDMC Ltd) needs to keep in mind the interest of its private steel making consumers while deciding on pricing."

"Our strength is our iron ore deposits, but we also have to look at the pricing process. It can't be so expensive that steel making itself becomes non-competitive," Sharma said.

"We have to look holistically at the complete value chain. Profits, yes... but no profiteering," she said.

"The NMDC has to come to a discipline and a system. Being a big player, their pricing will hit private players," she added.

--IANS

bc/nir/dg

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Price band for iron ore soon to curb volatility: Minister

The central on Thursday said it will soon announce a pricing mechanism for iron ore that would set a price band within which the mineral price would be allowed to fluctuate.

"We have set up a committee on iron ore pricing, which will present its report in the next 15-20 days, at the most in a month's time," Minister of Steel Chaudhary Birendra Singh told BTVi in an interview.

"Thereafter, we'll fix certain benchmark pricing, so that there are no fluctuations," he said.

"If there is a benchmark, then variations up to 10-12 per cent is alright... but 30-40 per cent fluctuation is too much volatility," he added.

The does not want high volatility in the iron ore market and wants the mineral prices to be as competitive as possible for steel companies.

In a separate interview with the channel, Steel Secretary Aruna Sharma said: "State-run iron ore miner National Mineral Development Corporation Ltd (NDMC Ltd) needs to keep in mind the interest of its private steel making consumers while deciding on pricing."

"Our strength is our iron ore deposits, but we also have to look at the pricing process. It can't be so expensive that steel making itself becomes non-competitive," Sharma said.

"We have to look holistically at the complete value chain. Profits, yes... but no profiteering," she said.

"The NMDC has to come to a discipline and a system. Being a big player, their pricing will hit private players," she added.

--IANS

bc/nir/dg

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

image
Business Standard
177 22