Lower iron prices a double whammy for NMDC

Declining international rates of iron ore pose risk to company's domestic sales as well as exports

NMDC has so far impressed investors with good volume growth, firm realisations and is also expected to report good performance in the March quarter (Q4). However, sliding international iron ore prices is a concern, and as a result, analysts are cautious about the company's prospects.
 
NMDC's iron ore sales for the month of April at 3.56 million tonnes (mt) marked a strong 40 per cent growth year-on-year (y-o-y), led by rising sales to clients outside Chhattisgarh. There has been good demand from players such as JSW Steel and RINL. Edelweiss data indicate JSW Steel procured three times higher rakes