Steel industry awaits for fall in
domestic prices on account of export duty rise and drop in international rates.
But NMDC is yet to decide on it price revision and is not sure of a price cut.
The government's recent move to
increase the duty on iron ore export to 30 per cent is likely to result in a
fall of 20-40 per cent in domestic ore prices, depending on the grade. Though
NMDC, the country's largest producer of ore, is yet to take a decision on
decreasing the prices, the steel industry is upbeat.
“Internationally, iron ore prices
have fallen by $50 a tonne and at the same time the Indian currency has
depreciated by about 22 per cent to the dollar. Over and above, there is an
export duty increase. All this put together, should bring the price below Rs
2,000 a tonne for 62.5 per cent Fe grade from the existing Rs 3,300 a tonne,” said Seshagiri Rao, joint managing director and group chief financial officer,
JSW Steel.
Presently, the base price at
Karnataka e-auctions is fixed at Rs 2,700- 2,750 a tonne for 63 per cent Fe
grade and NMDC charges Rs 3,380 a tonne.
N K Nanda, acting CMD of NMDC,
said, “We have not decided about decreasing the prices of iron ore. The market
is speculating about it. In fact, some mines in Orissa have increased their
prices due to shortage of ore. There will be some impact of price reduction in
the international prices. But, we are yet to take a view.”
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