Volatility in steel prices continues to create major concerns for NMDC, India's largest iron ore producer. Until last quarter, iron ore price fixing was done on quarterly basis, looking at high volatility in global and domestic steel prices it has been changed to monthly basis from October 2012.The change in pricing mechanism is seen to increase volatility in iron ore prices.
“We have taken two important decisions today. First, from henceforth, price will be determined on monthly basis. We have also decided to lower the prices by 2-11 per cent depending on the variety of iron ore,” NMDC Chairman C S Verma told PTI following the company's board meeting.
Industry participants consider it as a good move by NMDC and say it will be beneficial for both buyers and sellers.
“It is a good move, we are sure it will help the industry as we will be in a position to plan our purchases.” said a buyer of NMDC iron ore.
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