NMDC: Strong third quarter show despite annual volume decline of 20%

Iron ore realisations are likely to remain firm, supported by strong demand due to rising steel production

NMDC, the country’s largest iron ore mining company, performed well in the quarter ended December 2017 (Q3), led by realisations, even as volumes were soft. The sales volume at 8.58 million tonnes (mt) was down 3 per cent sequentially and 20 per cent year-on-year (y-o-y). The decline was expected, as plummeting iron ore prices in October-November had led to a rise in imports.

The ex-China price of 62-Fe grade iron ore has been volatile. From over $75 a tonne in September, it fell to $60 in October due to high inventories in China. But prices recovered, crossing $75 by December