After drawing flak from domestic steel makers for increasing iron ore prices contrary to the global trends, public sector mining company, NMDC, will now be appointing a global consultant for proper guidance on its pricing mechanism. The company’s current pricing policy is independent of any global trends and helps the company in discovering the prices based on the average price of the preceding quarter with a one-month lag.
Further to this development, the company has already invited global tender seeking expression of interest from consultants to offer their services on pricing mechanism and also received several applications, the evaluation of which is currently being taken up. Moreover, these consultants are expected to be appointed in a month and will guide iron ore pricing in the fourth quarter of the year.
Late in August, the company hiked iron ore price by 8-13% for the July-September period, with an aims to take benefit of the current demand-supply mismatch scenario in the market. The company raised raw material prices for the second consecutive quarter in this fiscal. During the last quarter, it had raised iron ore prices by 8-10% on increased demand and lower availability.
