National Mineral Development Corporation (NMDC) may increase iron ore export prices by 17-20 per cent in the next financial year to cash in on higher global prices. Rise essential to offset the increasing cost pressure on the company’s operations. The public sector miner is also mulling a shift from annual to quarterly contracts for overseas customers. NMDC is also planning to raise domestic iron ore prices for supply contracts from April 2011.
NMDC, which has a five-year supply contract with Japanese and South Korean companies, will renew these in April. The contracts are annual in nature. NMDC produces around 30 million tones iron ore per annum, out of which 10 per cent is exported.
Recently, iron ore prices in the international market touched the $190-200 mark per tone on a freight-on-board basis on the back of Chinese demand and supply constraints in major producing nations like India. The ban on export of iron ore from Karnataka and closure of some mines in Orissa and Chhattisgarh to check illegal mining have also contributed to the spurt in prices. Prices are expected to remain firm in the near term due to build-up of inventories in China along with strong economic recovery, which will lead to higher steel consumption.
| Company Name | CMP |
|---|---|
| Coal India | 438.70 |
| NMDC | 89.78 |
| GMDC | 733.40 |
| Sandur Manganese | 218.35 |
| MOIL | 327.60 |
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