Fearing a drop in sales after a robust January, state-owned miner NMDC has kept prices of iron ore unchanged for the current month, even as global rates have gone up. The company’s board, which met on February 2, decided to keep the iron ore prices for both lumps and fines varieties of the raw material unchanged at previous month's level.
The current international prices of iron ore for lumps, the superior variety of key steel-making raw material have almost doubled from what they were in September last year, mainly on high Chinese demand. While, NMDC is selling the lump variety, which Indian steel makers use mostly at amuch cheaper rate.
The reason for the company restraining price rise for the current month following reduction of Rs 320 per tonne in January is mainly to bring the parity with the available price in other iron ore mining states like Odisha. While, it also wants to ensure more sales of lump ore given the piling stocks in the pitheads of its mines in the absence of buoyant demand from domestic steel makers.
NMDC, India's top ore miner, accounts for about 15 per cent of iron ore mined in the country, with annual production capacity of 30 million tonnes.
| Company Name | CMP |
|---|---|
| Coal India | 438.70 |
| NMDC | 89.78 |
| GMDC | 733.40 |
| Sandur Manganese | 218.35 |
| MOIL | 327.60 |
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