India: NMDC Increases Iron Ore Base Price in Karnataka E- Auctions

NMDC has increased base prices in Karnataka e-auctions by INR 350/MT in fines & INR 300/MT in lumps.

Following hike in prices at its Chhattisgarh mines today, India’s largest iron ore miner – National Mineral Development Corporation (NMDC) has announced price hike in its floor prices of Karnataka e-auctions as well. Iron ore base prices at NMDC Kumaraswamy have been increased by around INR 350/MT in fines and INR 300/MT for lumps.

NMDC Kumaraswamy has increased fines (Fe 62.9%) base price by around INR 350/MT to around INR 2,968/MT (basic) against last assessment INR 2,633/MT. Similarly, for Fe 64% lump prices have also increased by around INR 300/MT to around INR 3,550/MT (basic) against last assessment INR 3,254/MT. All prices mentioned are basic. Royalty and other taxes extra.

This is the second time miner has raised iron ore prices within a month. Prior to this on 10th Sept the miner had raised prices by INR 150/MT in fines & INR 200/MT in lumps.

Reason for price hike-:

— Southern India (Bellary) based pellet makers have increased pellet price by INR 450-550/MT to INR 8,200-8,300/MT (basic) against INR 7,750/MT in last month assessment. Similar price levels were last seen in Nov’2014.

— C-DRI prices in Bellary also increased by INR 900/MT M-o-M to INR 24,000/MT as against INR 23,100/MT last month.

— Vizag Steel has announced a 3rd price hike in rebar recently in September. The company has resumed iron ore purchases from Karnataka after a gap of a month. In the month of Sept’18, RINL purchased total 2,00,000 MT iron ore from NMDC Kumaraswamy. Out of total iron ore purchased, lumps were 64,000 MT for Fe 63% grade at the bid price of INR 3,312/MT and remaining 136,000 MT fines (Fe 61%) at the bid price of INR 2,578/MT. Prices mentioned are basic, GST and other taxes extra.

Base prices mentioned are basic
Source: SteelMint Research