State-owned NMDC has reduced iron prices by ₹500 per tonne for lump ore as well as fines with effect from June 30.
Post revision, lump ore costs ₹5,950 per tonne and fines ₹5,110, India’s largest iron ore producer said in a filing on Monday.
The first such reduction in price of the key raw material of steel this fiscal by NMDC, it follows upward revision for two consecutive months.
In the previous revision, effective May 28, NMDC had set the price per tonne at ₹6,450 for lump ore and ₹5,610 for fines. On April 27, it had fixed lump ore price at ₹6,200 and that of fines at ₹5,260, translating into an increase of ₹400 and ₹200 respectively.
These are FOR prices and inclusive of royalty, DMF, NMET and exclusive of cess, forest permit fee, transit Fee, GST, environment cess and other taxes. On Monday NMDC shares closed 2.23% higher at ₹251.65 apiece on the BSE.
Output, sales decline
The reduction in the iron ore prices came even as NMDC reported a year-on-year decline in iron ore production and sales for June. Production for the month stood at 3.37 million tonne as against 3.48 MT in the corresponding period of previous fiscal. June sales totalled 3.73 MT (4.10 MT).
For the first quarter of current fiscal, production stood at 9.19 MT (10.70 MT) and sales 10.07 MT (11.15 MT).
