NMDC hikes prices of products by up to Rs 2,900 a tonne

State-owned NMDC today increased the prices of its iron ore by Rs 320 to Rs 2,900 a tonne for the April-June quarter.

"There is a 100 per cent increase in our iron ore prices exported to Japanese and Korean steel mills. For domestic customers, there has been an increase as well," NMDC Chairman and Managing Director Rana Som told PTI.

Giving details, NMDC Director (Finance) S Thiagarajan said that prices of iron ore fines for the current quarter have been increased to around Rs 2,920 a tonne against Rs 2,600 in the year ago period.

"Iron ore lump prices are at more or less the same level of last year. Last year, iron ore lump prices for domestic consumers stood at Rs 3,200 a tonne," Thiagarajan said.

NMDC will communicate the price increase to its domestic customers like Essar Steel, JSW and SAIL in the next couple of days, he said.

For the second quarter, he said, prices of NMDC's iron ore for Japanese and Korean steel firms is expected to increase by 22 per cent, while they will be 14 to 15 per cent higher for domestic customers in comparison to first quarter prices.

NMDC had last month clinched a nearly 100 per cent hike in the price of iron ore it supplies to global steel companies like Nippon Steel and Posco for the April-June quarter.

NMDC produced 24 million tonnes of iron ore in 2009-10. It exports about 3 million tonnes of iron ore per annum to Japanese and Korean steel mills at prices which form the benchmark rate for domestic consumers.