State-owned mining major NMDC has reduced iron prices by ₹200 per tonne for the lump ore variety and ₹250 for a similar quantity of fines with effect from March 21.
Consequent to the revision, made after maintaining prices for nearly two months and coming amid global cues, a tonne of lump ore will cost ₹5,800 and fines ₹5,060. These are FOR prices inclusive of royalty, DMF, NMET and exclusive of cess, forest permit fee, transit fee, GST, environment cess and other taxes, the company said in a filing.
NMDC, which is India’s largest iron ore producer and focussed on the domestic market, had last reduced iron ore prices in August. Shares of the company on Thursday closed 1.07% higher at Rs.207.95 apiece on the BSE.
Setting the backdrop for the latest price reduction are the falling iron ore prices globally triggered by a decline in steel demand in China. Iron ore is a key raw material in steel manufacturing.
In the previous price revision, effective January 24, NMDC had increased iron ore prices by ₹400 taking lump ore price to ₹6,000 per tonne and fines of similar quantity to ₹5,310. Prior to that on January 2, it had raised the per tonne lump ore price by ₹200 to ₹5,600 and by ₹250 to ₹4,910 for the same quantity of fines.
