India: NMDC Raises Iron Ore Base Price in Karnataka E- Auctions

NMDC has increased base prices in Karnataka e-auctions by INR 150/MT in fines & INR 200/MT in lumps.

Following hike in Chhattisgarh mines, India’s largest iron ore miner – National Mineral Development Corporation (NMDC) has announced price hike in its floor prices of Karnataka e-auctions. Iron ore base prices at NMDC Kumaraswamy have been increased by INR 150/MT in fines and INR 200/MT for lumps.

NMDC Kumaraswamy has increased fines (Fe 62.8%) base price by around INR 150/MT to around INR 2,620/MT (basic) against last assessment INR 2,477/MT. Similarly, for Fe 64% lump prices have also increased by around INR 200/MT to around INR 3,254/MT (basic) against last assessment INR 3,056/MT. All prices mentioned are basic. Royalty and other taxes extra.

Base prices mentioned are basic
Source: SteelMint Research

Domestic iron ore prices are rallying amid tight supply on weather constraints. Pellet price in Bellary increased six years high by INR 1800/MT M-o-M to INR 8200/MT as last assessment against INR 6,400/MT last month. C-DRI prices in Bellary also increased sharply by INR 3,900/MT M-o-M to INR 24,100/MT as against INR 20,200/MT last month.

On 7th Sept’18 the miner had raised iron ore prices from its Chhattisgarh mines by INR 150-370/MT.

Towards the end of August, NMDC had increased its base prices in Karnataka e-auctions by INR 150/MT in both lump & fines for the auction.

NMDC iron ore sales via e-auctions decreased by 8% in Aug’18- NMDC’s iron ore sales decreased by 8% M-o-M to 1.01 MnT in Aug’18 compared to 1.1 MnT in Jul’18. However, NMDC Kumarswamy recorded a sharp increase of 82% in its sales volume to 0.82 MnT in Aug’18 compared to 0.45 MnT in Jul’18 while sales from NMDC Donimalai mines has decreased significantly this month by 71% to 0.19 MnT in Aug’18 compared to 0.65 MnT in Jul’18.