NMDC to revise prices from April

Public sector miner NMDC is set to revise its pricing policy from April 1, said its Commercial Director V K Sharma here today.

"As our domestic agreements for supply of ore are expiring on March 31, we have engaged an international consultant to advice us on price structure. We are waiting for their report," Sharma told reports, adding the mining major does price revision every year.

Sharma said the England-based CRU Group has been entrusted to study the future pricing policy for the company for the next five years and he hopes the pricing will be better next year.

"We are expecting an increase in the price. The domestic as well as international demands are going up," Sharma added.

 

He said the prices have already been raised by Rs 270 per tonne (15 per cent) in January. The spot prices are going high and the company wants to have a long-term pricing policy that matches the international prices.

The CRU consultants will suggest the pricing mechanism that would optimise profitability, he said. The new pricing will be effective from April 1.

The present price range of iron ore is between Rs 1,940 and Rs 3,700 per tonne depending on quality. NMDC exports nearly 10 per cent of its iron ore production to countries like Japan and South Korea.

NMDC Chairman Rana Som, the present 30 million tonne production will be increased to 50 million tonne by 2014.