NMDC Increases Iron Ore Prices by upto INR 270/MT

National Mineral Development Corporation (NMDC)- state controlled miner has raised iron ore prices by INR 140-270/MT w.e.f today i.e. 04 Apr’16.

Iron ore sales of NMDC Chhattisgarh witnessed increase in Mar’16 and it dispatched 280 rakes of iron ore against 241 rakes in Mar’16. Another reason behind rise in prices would be rise in global iron ore prices (up by USD 10/MT M-o-M) in Mar’16 over strong steel prices in China.

NMDC Iron Ore Prices for Apr’16

Prices w.e.f 04 Apr’16  in INR/MT excluding DMF@30% of royalty
Royalty@15% and other taxes extra
Source: SteelMint Research

SteelMint learned that NMDC’s iron ore production was recorded at 28.5 MnT in FY16 and sales stood at 28.9 MnT.

Iron ore sales from NMDC Chhattisgarh up, stable in Karnataka

Iron ore supply from NMDC to Chhattisgarh based plants remained almost stable and it supplied 75 rakes of iron ore in Mar’16 against 73 rakes in Feb’16. However, procurement from outside state based units witnessed increase. NMDC supplied 122 rakes of iron ore in Feb’16 which rose to 159 in Mar’16.

JSW Steel resumed iron ore purchases from NMDC Chhattisgarh mines and procured 38 rakes in Mar’16.

NMDC iron ore sales in Karnataka remain stable in Mar’16. As per Karnataka DMG data, NMDC sold 1.34 MnT iron ore via Mar’16 Karnataka e-auctions.

NMDC iron ore export remain stable in Mar’16

NMDC exported 0.21 MnT iron ore in Mar’16 against 0.22 MnT in Feb’16. In FY16, NMDC exported 1.1 MnT iron ore to South Korea and Japan under its Long Term trade Agreement (LTAs).