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Iron ore price hike forces steel firms to pass on cost: Sajjan Jindal

On Jan 2, 2017, NMDC increased prices of higher grade iron (lumps) by Rs 500 to Rs 3,100 per tonne for the current month

Press Trust of India  |  New Delhi 

Sajjan Jindal
Sajjan Jindal

A hike in prices by state-run has left steel with no choice but to pass on the increased production cost to customers, Chairman has said.

"Recent increase in iron-ore price by state owned & is forcing steel to pass on increased cost of production," Jindal said in a tweet.

On January 2, 2017, the country's largest miner increased prices of higher grade iron (lumps) by Rs 500 to Rs 3,100 per tonne for the current month.

The state-run firm also raised the prices for fines, which is inferior grade ore, by Rs 500 to Rs 2,760 per tonne for January.

The increased cost of other raw materials like coal, refractory, electrodes is further fueling this and leaving no other option, Jindal said.

The price hike in January is the third-straight rise since November 2017 when NMDC had fixed the rates of lump ore at Rs 2,300 a tonne and that of fines at Rs 2,060 a tonne.

In December, 2017, it rose the price of lump ore by Rs 300 a tonne to Rs 2,600 and fines by 200 to Rs 2,260 a tonne.

First Published: Thu, January 04 2018. 15:07 IST
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