NMDC Increase Iron Ore Prices by INR 125-140/MT for Jan’17 Deliveries

The miner has raised prices of Baila lump, fines and ROM by INR 125/MT and DR-CLO by INR 140/MT.

India’s largest iron ore producer – National Mineral Development Corporation has raised iron ore prices upto INR 140/MT (USD 2/MT) w.e.f 03 Jan’17.

In its last price revision done on 29 Nov’16, the miner had raised fines prices by INR 100/MT and kept lump prices unmoved.

Factors governing NMDC (Chhattisgarh) iron ore prices:

Global iron ore prices increased further in Dec’16 – Monthly average iron ore fines (Fe 62%) index increased from USD 72/MT, CFR China in Nov’16 to USD 79/MT, CFR China in Dec’16.

Domestic sponge iron prices gained strength in later half of Dec’16 – Sponge iron prices in India remained under pressure in 1st half of Dec’16 with limited trade activities and curtailed production. However, prices started gaining strength later half of this month with increase in billet prices.

Sharp hike in domestic finished steel prices – Major finished flat producers are likely to raise flat steel product prices by INR 5,000-6,000/MT in Jan’17 over surge in production cost. As per reports, this would be the largest single price hike in last 5 years. To offset hike in production cost amid coking coal price surge, Indian steel makers are planning to go for price hike.

NMDC (C.G.) iron ore prices w.e.f 03 Jan’17

F.O.R prices in INR/MT 
Royalty, DMF, NMET & other taxes extra
Source: SteelMint Research