NMDC increases high-grade iron ore prices by Rs 150/tonne

New Delhi: State-owned NMDC on Wednesday increased the price of high-grade iron ore by Rs 150 per tonne to Rs 5400 per tonne.

NMDC is India's single largest producer of iron ore, which is an important raw material required for manufacturing of steel.

In an exchange filing, the company said it has fixed the price of lump ore (ore with 65.5 per cent iron content) at Rs 5,400 per tonne.


The prices are effective immediately, NMDC said.

The company did not make any changes in the rate of fines (ore with 64 per cent and less iron content).

In the last price revision announced August 8, NMDC had fixed the rates of lump ore at Rs 5,250 per tonne and that of fines at Rs 4,500 per tonne.

An analyst at markets research firm BigMint said, India's iron ore production has declined amid monsoon-related disruptions, while Odisha, a key producer of the mineral, has witnessed a notable drop in iron ore dispatches during June-July.

"The resulting tightening in ore availability, coupled with improving steel market sentiment, has supported a rise in NMDC," the analyst said.

Under the ministry of steel, Hyderabad-based NMDC alone caters to the country's 20 per cent need of iron ore.

NMDC operates four major highly mechanised iron ore mining complexes in India spread across Chhattisgarh (Bailadila sector) and Karnataka (Donimalai sector).