NMDC decides to cut down prices of its lump ore, iron ore fines

KOLKATA: NMDC, the country's largest iron ore miner, has decided to cut down prices of its lump ore and iron ore fines. While lump ore prices has been reduced from Rs 3,100 to Rs 2900 per tonne, a 9.6% reduction while that of iron ore fines have been fixed at Rs 2660 per tonne from Rs 2860 earlier, a 7% reduction. Both prices come into effect from August 20, 2019, NMDC said in a notification to the BSE on Wednesday.

The move comes close on heels of Karnataka government decision not to extend the lease of NMDC mine at Donimalai. Shares of state-run NMDC, India's largest iron ore miner, had slumped nearly 12% on Tuesday.
Donimalai has a capacity of 6 million tones per annum, which could add nearly 20 per cent to its production once fully operational.


"The prices of Iron Ore w.e.f. 20-08-2019 has peen fixed as.under: i) Lump Ore (65.53, 6-40mm) @Rs. 2,900/-per ton ii) Fines (643, - 10mm)@ Rs. 2,660/-per ton.

The above prices are excluding Royalty, DMF, NMET, Cess, Forest Permit Fee and other taxes," the notfication said.

The price cut could be a likely indication of the slow offtake of materialhe rain season. It comes at a time when the seasonal demand for ore is lower from NMDC's main customers the steel companies as monsoon is a period marked by low construction activity and hence reduced demand for steel.

Last week NMDC had notified the exchanges that w.e.f August 3, 2019 Lump Ore (65.53, 6-40mm) would be priced at Rs 3,100/-per tonne while Fines (643, - 10mm) at Rs. 2,860/-per tonne.