National Mineral Development Corporation (NMDC) has cut Iron ore Lump prices by INR 200/MT and kept Iron Fines prices unchanged for May, 2014 .
NMDC, state controlled India’s largest Iron ore miner, which produced over 30 MnT in FY14 has cut Iron ore Lump prices by INR 200/MT, in an unexpected move.
With mining ban looming in Odisha, market analysts were anticipating NMDC to increase its prices or at least keep it at similar levels.
Iron ore Lumps prices are down by INR 170-200/MT and now quoted at INR 4,300/MT (Fe 65 & 6-40 mm) and at INR 3,780/MT (Fe 65 & 10-150 mm). Higher grade Lumps (Fe 67 & 10-40 mm) also know as DR CLO offers are lowered by INR 100/MT to INR 5,090/MT and Fines (64%) unchanged at INR 2,910/MT.
Sources close to this matter say, lumps off-take from NMDC mines had been low in April due to price cut made by Odisha miners in the month of April, however fines demand and off-take was good.
NMDC Iron Ore prices for the Month of May, 2014
| Type | Grade, Size | Prices (In INR/MT) | Change |
| Baila Lumps | 65,6-40 mm | 4,300 | -200 |
| DR CLO | 67,10-40 mm | 5,090 | -100 |
| Baila ROM | 65, 10-150 mm | 3,780 | -170 |
| Fines | 64, 0-10 mm | 2,910 | 0 |
All prices are basic.
Royalty, Bonus/Penalty and other taxes extra.
Chhattisgarh Steel Makers Welcome this Move
Chhattisgarh steelmakers, who have a reserved quota of over 2 MnT from NMDC has welcome this move by NMDC. Manufacturers say, this will prompt them to lift material in good quantity from NMDC. On the other hand, with high possibility that Supreme Court may put some ban in Odisha, it will be an added advantage for Chhattisgarh steelmakers.
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