NMDC ‘s Iron ore prices declaration for Apr’14 surprised Sponge iron manufacturers in Chhattisgarh. The company has reserved around 2 MnT for state based mills.
Speaking to several manufactures in the state, SteelMint assessed that manufacturers were anticipating a price cut of at least 200/MT comparing to price cut by private miners in Odisha.
Most of them mention that, landed cost of NMDC’s CLO compared to Odisha is expensive by about 850/MT.
Odisha Iron ore price alteration is a factor to be considered. However, there are several parameters that drive NMDC prices. High Iron ore production and sale volume restricted NMDC from any price change.
Some of the manufacturers also questions the pricing mechanism. “When Odisha miners raised their prices, NMDC raised its price too. But when miners brought down their prices, NMDC kept it unchanged. Hence, there is no transparent pricing policy adopted by NMDC”, said an official at Chhattisgarh Sponge Iron Manufacturers Association.
Essar Steel and RINL are the largest buyers of NMDC ‘s Iron ore . Market anticipates that with Essar’s pipeline re-starting, NMDC is in a comfortable position to dispose its ore.
NMDC is the largest Iron ore miner in India with an annual capacity of around 32 MnT and achieved highest production of 30 MnT in FY14.
Leave a Reply