National Mineral Development Corporation (NMDC), state owned and India’s largest merchant iron ore miner has cut its prices by INR 90 to INR 120/t for March deliveries, according to sources. Company produces around 35-36 MnT iron ore annually.
The state-run firm has slashed prices after large mines in Odisha were allowed to resume operations on direction of Supreme Court.
Current prices for fines stand at INR 2,660/t (-100/t), lumps of size 6-40mm stand at INR 3,000/t (-100), DR CLO at INR 3,480 (-120) and ROM at INR 2,760/t (-90).
The Supreme Court order allowing some large iron ore mines like Serajuddin and Essel mining in Odisha to restart is likely to increase iron ore supply in domestic market.
Serajuddin has a production capacity of 15.15 MnT where as Essel Mining (Koira Mines) has a production capacity of 4 MnT per annum.
These mines had been ordered closed for defaulting in payment of compensation for overproduction. As a result, ore prices had risen sharply in recent months. Seven mines had shut down, some large, since the beginning of this year.
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