Anticipating erosion of bottomline due to the twin effect of iron ore
price hike and decline of steel prices, state-run Rashtriya Ispat Nigam
has urged steel ministry to bring down prices of key steel input.
“While we recorded a reasonable level of profit in Q1 of this fiscal, our
bottom line is severely affected in Q2 due to sharp increase in the price of
iron ore,” RINL has said in a monthly report to the steel
ministry.
Public sector NMDC had increased the contract price of iron
ore by 8-13 per cent for the July-September quarter. During the immediate
previous quarter, it had hiked iron ore prices by 8-10 per cent as well.
“The impact (due to hike in iron ore prices) is about Rs 15 to 20 crore a
month depending on the grade of supply of iron ore — fines, lump, CLO and
DRCLO. The increase in the price of DRCLO is 13 per cent due to which there
will be hardly any margin for RINL considering the sharp decline in steel
prices,” RINL said.
Source: The Economic Times
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