NMDC increases iron ore prices by Rs 300 per tonne on surge in demand

According to sources, the price increase was due to an increase in international and domestic demand combined with strong steel and pellet prices

NMDC has increased iron ore prices owing to a rise in demand in the international and domestic markets as well as higher steel and pellet rates.

The company said that lump ore price has been increased by Rs 300 from Rs 3,550 per tonne to Rs 3,850 per tonne, and fines price by Rs 200 from Rs 3,110 per tonne to Rs 3,310 per tonne.

This is the second time that prices are being increased in September, with the first one being its regular price announcement during the first half of the month.

The price hike is applicable to the Karnataka mines also. Basant Poddar, former chairman and member of Federation of Indian Mineral Industries (FIMI) South, said as global and domestic steel prices are strong, this move is in the right direction.

He added that the reasons for price hike are rains, less production in Eastern India coupled with robust demand along with very strong steel and sponge iron prices. 

He also said that these price hikes may have very little impact on price realisation until the government curbs imports and steel companies start procuring iron ore only from locals.

Up to August 2018, NMDC’s total production was 9.85 million tonnes while the sales was 11.05 million tonnes. The additional quantity was supplied from the inventory which piled up in Karnataka.

While Chattisgarh sales stood at 8.17 million tonnes against production of 6.17 mt, sales at Karnataka was 2.87 mt against production of 3.68 mt.