NMDC leaves lump ore prices, fines unchanged for third straight time

State-owned mining giant NMDC has left the prices of lump ore and fines unchanged for the third time in a row.

In a regulatory filing on Monday, NMDC said it has fixed the prices of lump ore at Rs 4,100 per tonne and that of fines at Rs 2,910 a tonne with effect from October 8, 2022.

Iron ore is one of the key raw materials used in the manufacturing of steel. Any movement in the prices of the mineral has a direct impact on the rates of steel, which has been a matter of concern for user industries for the past few months.

The company had on August 11 fixed the prices of lump ore and fines at Rs 4,100/tonne and Rs 2,910 per tonne, respectively. The prices were unchanged at its next announcement on September 8.

Research firm SteelMint said, "This is a rollover as compared to the last month. Iron ore prices and sales have been under pressure after government had imposed 15 per cent export tax. The Indian iron ore production has dropped by around 20 per cent since duty."

The rates exclude royalty, District Mineral Fund (DMF), National Mineral Exploration Trust (DMET) levies, cess, forest permit fee, and other taxes, NMDC added.

Hyderabad-based NMDC (formerly known as National Mineral Development Corporation) is India's largest producer and seller of iron ore.

The company, under the Ministry of Steel, accounts for around 17 per cent of the country's annual iron ore output.