India’s largest iron ore producer-National Mineral Development Corporation (NMDC) has yet not revised iron ore prices for Mar’16. As per sources, the company officials are having discussions over the differential iron ore pricing which has delayed the monthly price revision.
NMDC may adopt differential pricing policy for different states to boost sales. The miner plans to raise iron ore production which would be used by the state based units. Karnataka iron & steel Manufacturer’s Association (KISMA) already opossed the move. Whereas Chhattisgarh Sponge Iron Manufacturers’ Association has asked reduction in price over differential policy by INR 500/MT compared to landed cost of RINL.
The miner had rolled over its prices in last two months. Prices of Baila lump (Fe 65%) was INR 1,800/MT and those for fines (Fe 64%) was at INR 1,560/MT. (Royalty, DMF and other taxes extra)
Yesterday (07 Mar’16) global iron ore prices have witnessed sharp increase of USD 11/MT D-o-D amid rise in Chinese steel prices. Increasing iron ore prices in global market has made imported offers costlier thus making domestic ore comparatively preferrable. As per some reports NMDC is considering the current price trend also before revising prices for this month.
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