NMDC reduced January prices of iron ore lumps by around 6% to Rs 5,090/MT and iron ore fines is being offered at same prices at Rs 2,610/MT. The price cut resulted in NMDC shares to fall by 3% the last day.
According to C S Verma, Acting Chairman of NMDC, in a conversation with a TV channel, due to rise in demand of iron ore lumps and to bridge the gap in lumps and fines prices, the largest iron ore producer in India has taken a decision to cut prices.
The official also spoke on few other areas of concern, as mentioned below.
Regarding the domestic iron ore price trend in the coming months.
C S Verma said that iron ore (both lumps and fines) prices are unexpected to change much in the last quarter of the current financial year as international iron ore prices look to stabilize in future.
The company has set a target to produce a total of 25-26 million ton of iron ore this fiscal, low as compared to 27 mt in 2012.
The total output has been hampered due to issues relating to dispatch. The damaged slurry pipeline is lying nonoperational for last one year. It was being used by Essar to lift more than 1 mt of material.
NMDC is working with KPMG for the monthly iron ore pricing index.
Market has to wait for another one month for the draft report relating to NMDC monthly pricing mechanism in consultation with KPMG.
The company switched to quarterly price mechanism after the rise in export duty to 30% from that of 20% earlier and on concerns of long term customers who are looking for some stability in NMDC iron ore prices, a final decision will be taken by the company soon.
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