NMDC Slashes Iron Ore Prices Amid Weak Steel Market Response
State-owned NMDC has reduced prices of iron ore lump by Rs 600 and fines by Rs 500 per tonne, responding to a weak domestic steel market. The new rates include various royalties but exclude some taxes. The company saw tepid interest in its recent Chhattisgarh auction.
- Country:
- India
In a strategic move to adapt to market dynamics, state-owned NMDC has announced a reduction in iron ore prices. The price for lump ore is now set at Rs 5,700 per tonne, while fines are priced at Rs 4,850 per tonne, reflecting decreases of Rs 600 and Rs 500 respectively.
This pricing adjustment, effective from July 1, factors in elements such as royalty and district mineral fund but excludes certain taxes and fees. The steel market, struggling with downward pressure, has seen a 5% rebar index reduction, while the hot rolled coil index has dipped 1%, according to BigMint.
The response to NMDC's iron ore auction in Chhattisgarh was notably weak, with over 95% of 1,11,500 tonnes remaining unsold. As a major contributor to India's iron ore production, NMDC's pricing strategies significantly influence the steel industry's dynamics.
(With inputs from agencies.)
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