India: NMDC Hikes Iron Ore Price for June Deliveries

NMDC Ltd- India's biggest iron ore producer, has today announced a hike in its iron ore prices for June deliveries. The miner has raised Baila lump and fines price by INR 250/MT (USD 3.6), as per sources.

Revised prices of Baila lump ore is at INR 3,100 per wet metric tonne (wmt), Baila iron ore fines are at INR 2,860 per wet metric tonne and DR CLO is at INR 3,600 per wet metric tonne. FoR prices mentioned are excluding Royalty, DMF, NMET and other taxes. Last month the miner had rolled over iron ore prices for May.

Which all factors led to hike in NMDC iron ore prices?

1. Price hike by Odisha merchant miners - Since last week, Odisha major miners like Rungta Mines, Essel Mining ,Serajuddin Mines, RP Sao, KJS Ahluwalia, KN Ram raised offers by around INR 200-300/MT.

2. Hike in pellet offers - Domestic pellet offers in central and eastern India are hovering at 3-month high amid increased export deals. SteelMint's assessment for Indian pellet export price has gone up by USD 7/MT in last one month.

3. Global iron ore price hike makes import costlier- The rise in global iron ore price has favored domestic price hike. Spot iron ore fines Fe 62% index moved up to USD 103.6/MT and hit 5 years high as the prices were last seen in May'14. Following this, imported iron ore prices to India have turned costlier.