NMDC slashes iron ore price by Rs 400/tonne in second cut in 40 days

Firm say the move has given a lot of relief to steel companies, especially sponge iron-based firms in Chhattisgarh

NMDC has reduced the prices of iron ore by Rs 400 and also reduced the price of Direct Reduced Caliberated Lump Ore (DRCLO) by Rs 470 a tonne. 

This is the second price cut by the company in about 40 days. NMDC had earlier reduced the price of iron ore by Rs 500 per tonne and DRCLO by Rs 580 on April 4, taking the total price reduction in the two commodities to Rs 900 per tonne and Rs 1,050 per tonne, respectively. 

Business entities in Chhattisgarh are the main customers of DRCLO.

"This reduction in the price of iron ore has given a lot of relief to steel companies, especially sponge iron-based firms in Chhattisgarh. NMDC has considered the current market scenario of steel and iron ore and taken an informed decision to rationalise prices," said the company.

It may be noted that all the major steel mills are running at reduced capacity because of the depletion in demand for end-products.

Some merchant miners in Odisha, including Odisha Mining Corporation (OMC), have reduced iron ore prices by Rs 500 per tonne in their recently concluded auction. Despite this, they could not sell the entire quantity.

NMDC Chairman and Managing Director N Baijendra Kumar said, “The reduction in prices by NMDC has given a lot of relief to the steel companies and they appreciated this move by NMDC at this difficult juncture."