NMDC, the state-controlled mineral producer, has reduced iron ore prices by Rs 50 or around 1.5 per cent from March 14, responding to a demand slump last year.
Lump ore prices has been fixed at Rs 3150 per tonne and iron ore fines at Rs 2,860 per tonne, down 2 per cent. The new prices excluding royalty, cess, and other taxes.
The prices were fixed earlier at Rs 3,200 per tonne for lump ore and Rs 2,910 per tonne for fines with effect from January 19, 2020.
The prices are on a higher side compared to a year ago. According to data avialable in April 3, 2019 was lower at Rs 2,850 per tonne for lump ore and Rs 2,610 per tonne for fines, fixed with effect from April 3, 2019.
Domestic steel prices fell during most of 2019 due to low demand from industries and a slowdown in economy. Domestic steel consumption grew by just 3.8 per cent during April-February FY20 after growing by 8.8 per cent in the corresponding period last year.