Following price cut in Chhattisgarh mines, National Mineral Development Corporation (NMDC) has revised iron ore base prices for Karnataka e-auctions. Earlier, the miner had kept base prices unchanged for Apr’18 deliveries, i.e. in line with Mar’18 prices. In the latest revsion made, base prices have come down by INR 80-100/MT.
The miner has yesterday announced reduction in the prices owing to rising supply from Odisha based miners, rising imports and falling global iron ore prices. It may also attribute to weak response received in recent Chhattisgarh e-auction.
For Apr’18 e-auction, base prices for NMDC Donimalai fines (Fe 60.2%) is reduced to INR 2,679/MT against 2,765/MT for previous month. The price for lump (Fe 62.2%) is decreased to 3,132/MT compared to previous price at INR 3,221/MT. The miner Last month (Mar’18) had cut high grade iron ore prices by about INR 100/MT and that for low grade by INR 60-70/MT.
| Grade (Fe %) | NMDC Donimalai E-Auction – Iron Ore Base Prices on 19th Apr’18 (INR/MT) | |||
| Fines | M-o-M | Lump | M-o-M | |
| 65 | 3,381 | -104 | 3,527 | -100 |
| 64 | 3,235 | -100 | 3,386 | -96 |
| 62 | 2,942 | -93 | 3,104 | -88 |
| 58 | 2,358 | -77 | 2,539 | -73 |
| 57 | 2,212 | -73 | 2,398 | -69 |
Base prices mentioned are basic
Source: SteelMint Research
CEC Approves Enhancement of NMDC Karnataka Mines to 14 MnT
In a major development, NMDC – India’s largest iron ore miner has got approval to enhance its iron ore production limit to 14 MnT by CEC (Central Empowered Committee) from previously allotted 9.45 MnT in Karnataka. The letter issued by CEC reads NMDC Donimalai (ML no 2396) is approved to enhance its permissible annual production from 3.38 MnT pa to 7 MnT pa, based on EC limit. Also, NMDC’s Kumaraswamy mine having ML no. 1111 has been approved to enhance its permissible annual production from previous 6.07 MnTpa to 7 MnT pa.
NMDC iron ore production from Karnataka stable in FY’18
The miner accounts for nearly 45% share in state’s iron ore production. It operates two mines in Karnataka state namely Donimalai and Kumaraswamy.
NMDC’s iron ore production in FY’18 marked highest since inception at 35.5 MnT, up 4% against 34.03 MnT in FY’17. The company’s production is in line with the laid target announced earlier this year.
The total production from Chhattisgarh mines for FY’18 (Apr’17- Mar’18) recorded at 23.5 MnT, up 7% against 22.03 MnT in FY’17. The production from Karnataka mines for FY’18 stood at 12 MnT in line with production in FY’17.
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