NMDC Ltd- India’s biggest iron ore producer, has today announced a cut in its iron ore prices. Prices of iron ore fines and lumps have been reduced by INR 200/MT and in DR-CLO price cut is by INR 230/MT.
Prices of Baila lump ore is at INR 2,900 per wet metric tonne (wmt), Baila iron ore fines are at INR 2,660 per wet metric tonne and DR CLO is at INR 3,370 per wet metric tonne. FoR prices mentioned are excluding Royalty, DMF, NMET and other taxes.
Due to weak sponge and semi-finished prices in the domestic market amid sluggish domestic demand the miner has cut prices.
Pellet offers in Raipur have come down by INR 600/MT in a month’s time on falling export prices.
Decline in sponge iron prices – C-DRI in Raipur have moved down by INR 800/MT. Yesterdays’ C-DRI prices in Raipur was assessed at INR 16,700/MT against INR 17,500/MT a month back.
Global spot iron ore fines index down by around USD 30: The global iron ore fines prices (Fe 62%) has decreased to USD 88.45/MT, CFR China as assessed yesterday (20th Aug) against being USD 115/MT, CFR China a month back. The prices have dropped by around USD 27-28/MT against hovering at five years high levels at USD 126/MT, CFR China towards early July.
NMDC production and dispatches affected amid monsoon – The company recorded production of 1.95 MnT in Jul’19, down 23% as against 2.52 MnT in Jun’19. However, on yearly basis production moved up by 37% as against 1.42 MnT in Jul’18. According to railway movement data compiled with SteelMint, NMDC supplied only 8 iron ore rakes to Chhattisgarh based units during 1st half of the month (1st-15 Aug’19) over monsoons. On an average NMDC supply around 40-50 rakes to state-based units in a month’s time.
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