NMDC hikes iron ore price by up to Rs 150, peanuts say other miners

NMDC, India’s largest iron ore miner, has raised iron ore prices by Rs 70-150 a tonne for this month, effective last Friday.

Lump & fines prices are up Rs 150 a tonne; for other varieties, by Rs 70-140 a tonne. Last month, it had kept prices unchanged.

A senior official of another Karnataka-based mining company, MSPL, said: "This is not at all in line with global prices. Plus, domestic steel prices have gained significantly after their price hike and removal of discounts. In addition, with curtailment of cheap imports, steel companies have nearly 15 per cent of the demand market vacant. I am flooded with orders for sponge and pellets, which clearly says there is huge demand in the market, which is also budgetary (after several government project announcements). NMDC should have raised prices by Rs 500-700 a tonne."

The surge in global iron ore prices has impacted the domestic market. Prices in ore auctions over recent weeks were being quoted at a premium, indicating higher demand and rising global prices. The latter have risen in a month by $12 a tonne to $50-60, due to the rising import by Chinese steel mills. China steel prices have also increased by seven per cent in a month.

"Following this, offers for imported ore to India have also moved up sharply. Hence, domestic ore prices have also shown an increase," stated NMDC.

NMDC's price after the increase would be about Rs 2,250 a tonne, including taxes. Imported ore would be Rs 5,650 a tonne.