NMDC lowers iron ore prices by 8-9% amid supply glut, demand slump

Demand going to remain subdued for next 3 months due of lack of work on construction, infrastructure

NMDC, the central government-owned mining entity Ltd, cut its iron ore prices by 8 to 9 per cent with immediate effect, due to excess supply and a slump in demand from Indian steel producers. The price of ore lumps is now down 8.2 per cent to Rs 2,225 a tonne and of ore fines by 9.15 per cent to Rs 1,985 a tonne.

With the monsoon having spread, steel demand is going to remain subdued for the next three months because of lack of work on construction and infrastructure projects. Another reason for the price cut is the oversupply of ore,