India: NMDC Cuts Iron Ore Prices in Karnataka; Chhattisgarh Prices Unchanged

NMDC has cut iron ore base prices by INR 300/MT in Karnataka e-auctions on falling sales. However, prices in NMDC Chhattisgarh have remained unchanged.

India’s largest iron ore miner – National Mineral Development Corporation (NMDC) has announced price revision today. Iron ore base prices at NMDC Donimalai has been decreased by INR 300/MT in fines and lumps both with effect from today (i.e. 22 Jun’18).

NMDC Donimalai has decreased fines (Fe 64%) base price around INR 300/MT to around INR 2,960/MT (basic) against last assessment INR 3,285/MT. Similarly, for Fe 65% lump prices have come down by around INR 300/MT to around INR 3,300/MT (basic) against last assessment INR 3,627/MT. All prices mentioned are basic. Royalty and other taxes extra.

JSW Steel’s shift towards imported iron ore & Odisha

Karnataka e-auction sales have been come down in last two months owing to reduced purchase from JSW Steel. This has resulted in lowering base prices by NMDC. JSW who is the biggest buyer of NMDC (Karnataka) shifted to imports and other merchant miners in Odisha for its requirement. The company was imported 1.35 MnT iron ore in May’18 which is almost double from 0.66 MnT in Apr’18.

JSW Steels iron ore purchases from Karnataka e-auctions stood at 1.03 MnT in May’18 increased significantly by 66% M-o-M compared to 0.62 MnT in Apr’18. Out of 1.03 MnT iron ore sourced by JSW, NMDC supplied 0.06 MnT in line with Apr’18. However, company’s sourcing from private mines increased sharply from 0.56 MnT in Apr’18 to 0.97 MnT in May’ 18.

NMDC rolls over Iron ore prices in Chhattisgarh -:

NMDC (C.G) has kept prices unchanged today’s (22nd Jun’18) prices revision. Last month, NMDC, Chhattisgarh increased prices by INR 100-170/MT.

NMDC (C.G.) iron ore prices-:

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