Deviating from its earlier practice of fixing price for three-month period, the country’s largest iron ore producer NMDC in its board meeting today decided to set the price on monthly basis.
“We have taken two important decisions today. First, from henceforth, price will be determined on monthly basis. We have also decided to lower the prices by 2-11 per cent depending on the variety of iron ore,†C S Verma, Chairmanm, NMDC said following the company’s board meeting.
Steel makers were anticipating more reduction looking at steel prices in India for last few months. NMDC had surprised market by raising its 2nd quarter prices by 8-13%.
“Lumps prices have been cut by 2% and fines prices have been cut by 11%.Lumps demand is still good in domestic market,although demand for fines have gone down on weak exports.” said an official at NMDC.
On the other hand steel makers are still not happy with marginal cut.Though we tried to contact large manufacturers like JSW, Essar and RINL, all were unable at the moment.
Chattisgarh Sponge Manufacturer Association president said that this move was not expected specially when industry is going through a bad phase.We are sure, not many buyers would be willing to take ore from NMDC, when they have option of buying cheaper ore from Odisha.
Also this will make steel makers to think for imports of iron ore in near term.
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