NMDC increases price of lump ore, iron ore fines by Rs 150 a tonne

3-Sept-2018

NMDC Limited, a state-controlled mineral producer, has increased the price for lump ore and iron ore fines by Rs 150 a tonne with effect from August 22.

The company informed exchanges that the price has been increased to Rs 3,350 a tonne from Rs 3,200 a tonne for lump ore and to Rs 2,960 a tonne from Rs 2,810 a tonne for iron ore fines.

Unlike in the past, this price hike will also include Karnataka, said company officials, adding that it was meant to reduce the gap between iron ore sold from the NDMC mines in Chhattisgarh and Karnataka and that sold from mines in Odisha.

Seshagiri Rao, JMD and group CFO, JSW Steel, said that the price hike could be a result of the rupee’s depreciation. He added that considering the quality of the iron ore in Karnataka, the prices should be competitive.

Basant Poddar, former chairman and member of the Federation of Indian Mineral Industries (FIMI) — South, said that the price revision is a welcome move to spur local consumption and revenue to the state of Karnataka.

In January, NMDC was quoting Rs 3,100 for lump ore and Rs 2,760 for iron ore fines. Subsequently, the prices dropped to Rs 2,900 and Rs 2,560, respectively, in April. The company has increased the prices gradually in the following months.

Up to July 2018, NMDC’s total production was 8.39 million tonnes (MT) as against sales of 8.72 MT. While Chhattisgarh sales stood at 7.08 MT as against production of 5.50 MT, Karnataka sales were 1.64 MT as against production of 2.89 MT.

Source: BUSINESS STANDARD