India: NMDC raises iron ore prices after four consecutive cuts since April

PSU miner NMDC has raised iron ore prices by up to INR 240/tonne (t) for August deliveries, SteelMint learnt from credible sources. The company has raised prices of lump ore by up to INR 200-240/t and fines by INR 100/t, effective from 11 August. Notably, this is the first hike seen after four price cuts seen since April.

Factors behind price hike:

• Lower output owing to monsoons– Lower production of the mineral as a result of monsoons has supported iron ore prices. NMDC’s iron ore output decreased to 2.05 mnt in July, down 20% m-o-m from 2.57 mnt in June.
• Stability in steel price- Domestic steel demand has increased since July and is expected to increase further with the end of the monsoon rains in September, while steel prices are also likely to firm up. SteelMint’s benchmark HRC price for trade segment was assessed at INR 57,300/t exy Mumbai, excluding GST on 10 August. Prices have remained rangebound over the last week.
• Restocking demand- Iron ore demand moves in lockstep with steel demand. According to sources, restocking demand at steel mills has lifted iron ore prices up to current level. The miner’s iron ore sales increased by 55% m-o-m to 2.95 mnt in July.