Mining shares gain on price hike hopes; NMDC up 10%
Shares in mining and mineral companies were up 5-10 per cent on hopes of higher mineral prices, such as iron ore and coke, after state-run NMDC said it will raise iron ore prices after talks with its Japanese clients.
By INDIATIMES NEWS NETWORK |
MUMBAI: Shares in mining and mineral companies were up 5-10 per cent on hopes of higher mineral prices, such as iron ore and coke, after state-run NMDC said it will raise iron ore prices after talks with its Japanese clients.
At 11:48 am, leading the gains was NMDC, up 10 per cent, followed by Gujarat Mineral Development (8.54%) and Gujarat NRE Coke (6.14%) and Sesa Goa (1.43%).
NMDC, which accounts for about 15 per cent of India's iron ore production, sells contracted iron ore at prices based on those of the world's top miners -- Brazilian miner Vale, BHP Billiton and Rio Tinto.
NMDC sells under long-term contracts to Vishakhapatnam Steel Plant, Essar Steel ESRG.BO, JSW Steel, Ispat Industries, Vikram Ispat and dozens of smaller firms.
Domestic iron ore prices are being keenly monitored by domestic steelmakers, who have asked the government to lower import duties on metallurgical coke, zinc and other raw materials to help keep steel prices from rising.
Steel prices in India have been on the rise in the past three months, but last week some leading domestic steelmakers rolled back prices of some long steel products and roofing material following an appeal by the steel ministry.
At 11:48 am, leading the gains was NMDC, up 10 per cent, followed by Gujarat Mineral Development (8.54%) and Gujarat NRE Coke (6.14%) and Sesa Goa (1.43%).
NMDC, which accounts for about 15 per cent of India's iron ore production, sells contracted iron ore at prices based on those of the world's top miners -- Brazilian miner Vale, BHP Billiton and Rio Tinto.
NMDC sells under long-term contracts to Vishakhapatnam Steel Plant, Essar Steel ESRG.BO, JSW Steel, Ispat Industries, Vikram Ispat and dozens of smaller firms.
Domestic iron ore prices are being keenly monitored by domestic steelmakers, who have asked the government to lower import duties on metallurgical coke, zinc and other raw materials to help keep steel prices from rising.
Steel prices in India have been on the rise in the past three months, but last week some leading domestic steelmakers rolled back prices of some long steel products and roofing material following an appeal by the steel ministry.
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