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NMDC may not gain from higher global iron ore prices, say analysts

Investors need to be cautious as analysts see limited benefits for NMDC on account of the weak domestic prices and increased supplies by other local producers

iron ore

India had produced more than 200 mt of iron ore in 2010-11

Ujjval Jauhari New Delhi
India’s largest iron ore mining company NMDC has lost about 22 per cent of its market value since mid-September on declining domestic iron ore prices. The company had to take price cuts over the past two months.

Moreover, concerns due to the halting of production at NMDC’s Donimalai mines in Karnataka, over mining rental issues, remain elevated. While the resolution of production and pricing issues is awaited, a mining disaster in Brazil has led to the possibility that Vale SA — the world’s second-largest producer — may come under scrutiny, thereby pushing up global prices and benefitting other iron ore

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First Published: Jan 30 2019 | 11:49 PM IST

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