NMDC is likely to increase prices of lumps and fines by 8-10% for the July-September quarter, despite global iron ore prices remaining stable in the last few weeks. It has more scope now to shield its prices from global trends, as its new pricing mechanism is based on domestic demand-supply dynamics instead of the earlier export parity formula.
The company had injected a similar hike for the last quarter, with the increase ranging from Rs 250 to Rs 400 a tonne. Higher grade iron ore lumps are currently priced at about Rs 5,400 a tonne, while fines have a price tag of about Rs 2,800.
NMDC is a state-controlled mineral producer of the Government of India. It is fully owned by the Government of India and is under administrative control of the Ministry of Steel.
