India: NMDC Makes Marginal Reduction in Iron Ore Prices from Chhattisgarh Mines

NMDC Ltd- India's biggest iron ore producer is heard to have lowered iron ore prices today, as per credible market sources report to SteelMint. Prices of baila fines and lump have been reduced by INR 50/MT and DR CLO by INR 60/MT. Revised prices have come into effect from today (14 Mar'20).

Prices of Baila lump ore is at INR 3,150 per wet metric tonne (wmt), Baila iron ore fines are at INR 2,860 and that of DR CLO is INR 3,660 per wet metric tonne. FoR prices mentioned are excluding Royalty, DMF, NMET and other taxes.

NMDC supplied a total of 399 rakes (1.54 MnT) of iron ore in the month of Feb'20, up 4% against 383 rakes (1.47 MnT) a month before in Jan'20, according to railway movement data maintained with SteelMint.

State-based steel plants decreased iron ore sourcing from NMDC (C.G.) significantly by 76% from 70 rakes (equivalent to 269,500 MT) in Jan'20 to 17 rakes (65,450 MT) in Feb'20 (This does not include movement through road).

SteelMint's Raipur pellet price assessment has come down by INR 400-500/MT in a month's time. Sponge iron prices in central India are hovering at over two months low on less trades and weaker market sentiments in secondary steel market.

Earlier, NMDC increased the prices from its mines twice in the month of Jan'20.