Indian govt. has asked country’s largest iron ore producer – NMDC to review iron ore prices on quarterly basis. NMDC is state owned miner and produced 34.03 MnT iron ore in FY17, up 20% Y-o-Y.
As per reports, India has asked state miner NMDC to consider reviewing iron ore prices only once in three months instead of regular revisions, and help steel companies handle raw material purchases better, said the Steel Secretary.
It is to be noted that NMDC had earlier adopted quarterly pricing policy and it was in Oct’12 that the miner began revising prices on monthly premises over volatility in global iron ore market.
NMDC’s iron ore sales were recorded at 35.62 MnT in FY17, up 24% Y-o-Y.
NMDC has its iron ore mines in Chhattisgarh and Karnataka. Apart from exporting ore to South Korea and Japan under LTA from NMDC (C.G.), it supplies ore to Chhattisgarh based sponge units as well as outside state based units primarily RINL, JSW Steel, Essar Steel etc.
NMDC sells ore via e-auctions in case of Karnataka and accounts for nearly 50% of total allotted quantity. Major buyers in Karnataka e-auctions include JSW Steel, BMM Ispat, MSPL etc.
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