NMDC Cuts Iron Ore Prices on Rising Supply in Domestic Market
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National Mineral Development Corporation (NMDC), state-owned and India's largest merchant iron ore miner has cut its prices by around INR 100/t for rest of April, according to an official announcement made by the company. The company produces around 35-36 MnT iron ore annually.
Current prices for fines stand at INR 2,560/t (-100/t), lumps of size 6-40mm stand at INR 2,900/t (-100), DR CLO at INR 3,370 (-110) and ROM at INR 2,660/t (-100).
NMDC generally fixes prices on a monthly basis.
SteelMint learned from market sources that, prices have been cut on rising supply from Odisha based miners, rising imports and falling global iron ore prices.
Odisha based miners have cut prices by around INR 150-250/MT for April.
Notably, Odisha is the largest iron ore producing state in the county and contributes over 50% of India's iron ore production.
The Supreme Court order allowing some large iron ore mines like Serajuddin, RP Sao and Essel mining in Odisha to restart production has increased iron ore supply and put pressure on prices.
These mines had been ordered closed for defaulting in payment of compensation for overproduction. As a result, ore prices had risen sharply in recent months. Seven mines had shut down, some large, since the beginning of this year.
