India's largest iron ore producer and exporter has increased prices of its iron ore by Rs 300-700/t for the domestic market for the July-September quarter said market sources.
The state-run company has increased its offers for iron ore fines by Rs 200 at Rs 3,030/t , and lumps by Rs 700 at Rs 6,190/t (Ex Mines Jagdalpur, Excluding royalty and taxes).
Sponge manufacturers have not welcomed this decision specially when industry is undergoing a bad phase and iron ore available from Odisha is much cheaper than NMDC.
Company officials refused to comment on hike and said it will be declared officially tomorrow morning.
“This hike was very unexpected, in fact market was anticipating a cut of Rs 300-400/t looking at weak demand and higher power costs.This hike will increase cost of production up to Rs 1,000-1,400/t.Sponge manufacturers will now look to source from Odisha as it is still cheaper.” said a sponge manufacturer based in Raipur (Chattisgarh).
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