NMDC cuts fines prices by 15 percent and lump prices by 3.2 percent for July
NMDC (National Mineral Development Corporation), India’s largest and state owned miner has cut iron ore fines prices by INR 300 (15%) and lump (6-40mm) & ROM prices by INR 100 (3.2%) for July deliveries. Where as DR CLO (67% Fe) prices have been kept unchanged.
Since the beginning of Q1 FY16, NMDC has cut prices for 10-150 mm by 7%, 10-40 mm by 5%,6-40 mm by 9.2% and fines by 32.5%.
Prices have been cut on backdrop of falling global prices and recent cut by Odisha based merchant miners.
NMDC Iron Ore Prices from April’15-July’15
| Month | 10-150 mm (Fe 65%) |
10-40 mm, DR CLO (Fe 67%) |
6-40 mm (Fe 65%) |
Blue Dust/Fines |
| July’15 | 2,590 | 3,840 | 2,950 | 1,660 |
| June’15 | 2,690 | 3,840 | 3,050 | 1,960 |
| May’15 | 2,690 | 3,840 | 3,050 | 1,960 |
| April’15* | 2,690 | 3,840 | 3,050 | 1,960 |
| April’15 | 2,860 | 4,040 | 3,250 | 2,460 |
Prices in INR/MT
*Prices effective from 18-30 Apr’15
Royalty@15% and other taxes extra
Source: SteelMint
NMDC’s Iron ore Production & Sales in Q1
In June’15, the company produced 1.80 MnT iron ore and its sales were 2.12 MnT.
| Months | Iron ore Production | Sales |
| April’15 | 1.84 | 2.30 |
| May’15 | 2.30 | 2.24 |
| June’15 | 1.80 | 2.12 |
| Total | 5.94 | 6.66 |
Qty in MnT (million tonnes)
Provisional data
The company has planned a capex of INR 35 bn for FY16 and expecting to ramp up production to 35 MnT in the current fiscal and 100 MnT by FY25.
NMDC’s Export Agreement With Japan & Korean Mills
Last month, NMDC decided to renew its long term agreement with Japan and South Korea for a period of three years (Apr’15-Mar’18). Under this agreement, about 3.8 to 5.5 MnT of Indian iron ore mined by NMDC Limited will be shipped to countries by government-owned trading house MMTC Limited.
Export has not begun yet,as terms and conditions with these countries are yet to be finalized.
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