NMDC keeps Feb iron ore prices unchanged

Last month the company hiked price of fines, inferior variety of the steel-making raw material, by Rs 100 per tonne

State-run iron ore miner NMDC has kept prices for both lump and fines unchanged for March with global rates falling to its lowest in the last eight months.

"Iron ore prices for both lump and fines have been kept unchanged for March," a senior NMDC official told PTI.

The country's largest iron ore producer reviews prices of the raw material for steel-making every month, mainly considering two factors -- the domestic demand and international prices.

While domestic demand is in tact, international price has plummeted to its lowest in eight months to $117-118 per tonne, primarily on subdued Chinese demand.

Every tonne of steel production needs 1.6 tonne of iron ore.

"The subdued global prices leaves us with hardly any room to jack up the price," the official said, adding the demand for iron ore was on the rise as steel production picked up in recent times.

Last month NMDC hiked price of fines, inferior variety of the steel-making raw material, by Rs 100 per tonne to Rs 2,910 a tonne. However, it had not changed the lump price and kept it at Rs 4,500 per tonne.

The PSU had in December last year raised prices for both lumps and fines by Rs 200 per tonne and maintained the October price in November. In October, it had increased the price by Rs 100 a tonne.

During the 10-month period of the current fiscal, NMDC has sold 24.28 million tonnes of iron ore, just 3.25 million tonnes more than what it sold in the corresponding period of the last fiscal.

The company hopes to clock its best-ever sales in current fiscal to over 30 MT.