NMDC price cuts: Analysts say sustaining realisations crucial for earnings

As concerns on volumes remain elevated with Karnataka mining issue, realisations from here on holds key

NMDC’s price cut announcement in December soon after reporting strong jump in sales has dampened Street sentiment.
 
The stock, which had recovered slightly, slipped to its 52-week low a few days back and continues to trade weak.
 
The company’s latest volume numbers showed that sales volume surpassed the 3 million tonne (MT)-mark in October for the first time in FY19. This was buoyed by the Chhattisgarh segment.
 
However, the falling international iron ore prices led the company to cut rates for lumps and fines for the first time since April by Rs 300/tonne and Rs