Jump in ore prices eases NMDC's woes; shares rebound by 16%

NMDC’s shares have rebounded by over 16 per cent from May lows on the back of rising international iron ore prices — which have helped India’s largest iron ore miner to increase prices — and its cheap stock valuations.

However, with the onset of monsoon, the outlook for steel demand remains subdued in the September quarter, which is a traditionally weak quarter for steel and ore. Also, the company’s March quarter performance and June sales update do not impress.

International iron ore futures have surged to over $100 per tonne from $80 in April-May after Brazil’s Vale SA was ordered