NMDC, nation's largest Iron ore miner with 30 MnT pa installed capacity, is likely to declare its Iron ore prices on September 06.
NMDC normally revises Iron ore prices on a monthly basis considering the demand and supply situation.
The company's Iron ore production and dispatches were weaker in the month of August, owing to monsoon. Availability of Iron Pellet at low prices resulted in weak demand for Iron ore lumps. Also, Iron ore fines off-take from one of its largest long term customer, came down drastically last month.
The landed cost difference in lumps to a Sponge iron plant located at Raipur (Chhattisgarh), purchased from miners in Odisha is less by about Rs 1,000/MT than the raw material sourced from NMDC.
Consequently, Chhattisgarh Sponge Iron Manufacturers Association (CGSIMA) has requested NMDC to cut lumps prices for September bookings.
However, through e-auctions, NMDC sold fines in good quantities to Karnataka based Pellet makers. Whereas, buying in lumps took place in limited quantity.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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