Indian Largest Iron Ore Miner NMDC, keeps Prices Unchanged for June

India’s largest iron ore producer – National Mineral Development Corporation (NMDC) has kept iron ore prices unchanged for Jun’17 deliveries. NMDC achieved around 20% yearly growth in its iron ore output last fiscal and produced 34.03 MnT iron ore.

Amid reduced offtake from Chhattisgarh based units in May’17 and decline in sponge prices, market sources were anticipating price cut, but the miner has announced a roll over in prices.

According to BSE filing, NMDC Baila lump & fines prices have remained unchanged for Jun’17. However the company officials could not be reached.Notably, since Mar’17, the miner has maintained iron ore prices at same levels.

NMDC (C.G.) iron ore prices for Jun’17

F.O.R prices in INR/MT
Royalty, DMF, NMET & other taxes extra
Source: NMDC BSE filing

C.G. based units resume iron ore procurement dropped significantly from NMDC in May’17 – Chhattisgarh based sponge units have sharply reduced iron ore procurement from NMDC Bailadila mines in May’17 compared to that in Apr’17. They sourced 19 rakes in Apr’17 which fell further to 11 rakes in May’17 (till 25th).

Procurement of iron ore from NMDC (C.G.) by outside state based units also fell in May’17 (till 25th) to 189 rakes against 276 rakes in Apr’17. JSW Steel has procured 38 rakes in May’17 (till 25th)  against 66 rakes in Apr’17. Vizag Steel also reduced iron ore sourcing from 163 rakes in Apr’17 to 116 rakes in May’17 (till 25th).