Iron ore prices may not change in near future: NMDC

In past one year, NMDC has either reduced the ore prices on a monthly basis or kept them unchanged as demand has been subdued

State-owned National Mineral Development Corporation (NMDC) today said it does not foresee any changes in iron ore prices in international or domestic markets as steel demand continues to soar overall. C S Varma, Chairman-cum-Managing Director, NMDC, said steel production statistics from India and China indicate that the demand for steel is going up which would result surge in iron ore demand.

"Pricing.. I see more of stable price regiment. Whatever is the present iron ore pricing levels are prevailing in the overseas market and domestic markets, I don’t see any changes in the immediate near future either upward or downward.      "I can only predict for the next two to three months time. Its all the play of market forces. Next two to three months time I don’t foresee any price change either upward or downward," Varma told reporters on the sidelines of company's annual general meeting here.

Iron ore producer has kept prices unchanged for both the varieties of ore - lumps and fines - for the current month.

Accordingly, iron ore lumps will be sold at Rs 4,200 a tonne and fines at Rs 2,510 per tonne, company sources had earlier said. Iron ore lumps are of a higher grade, with iron content of 63-65 per cent. Fines are of lower grade, with iron content of less than 60 per cent.

In past one year, NMDC, the largest domestic producer of iron ore, has either reduced the ore prices on a monthly basis or kept them unchanged as demand has been subdued. China commands 45 per cent market share of the steel globally. The growth in year 2012, in China was 2 per cent and the growth for the first seven months of the current calendar year stood at 7.1 per cent.

The growth in steel production in India in the financial year from April to August was 5 per cent and for the whole year 2012 the growth was just 0.7 per cent, Varma explained.

"All these things give a level of optimism that bad times are over and times ahead are good times," Varma opined.

Replying to query on the outlook of iron ore production of NMDC for the current year, he said the PSU has signed an MOU with the Government, saying that it would produce 28 million tonnes in the current year and hoped that they would achieve more than the target.