NMDC slashes iron ore prices for second month in a row

India’s largest iron ore producer NMDC has reduced the price of the commodity by ₹200 per tonne, effective August 8.

It is the second consecutive month the State-owned mining major has slashed the price of key raw material for steel. The new, per tonne prices have been set at ₹5,250 for Lump ore (65.5%, 10-40mm) and ₹ 4,500 for Fines (64%,-10mm). These are freight on road/rail (FOR) prices that are exclusive of royalty, DMF levy, NMEDT, cess, forest permit fee, transit fee, GST, environmental cess and other taxes, the company said on Saturday in a filing on the fifth price revision in as many months this fiscal.

Following the latest change, Lump ore price is below the April 5 level of ₹5,300. At ₹4,500 per tonne, the price of Fines is on the same revised April level.

During the previous revision effective July 10, NMDC had reduced iron ore prices by ₹250 a tonne for Baila Lump and by ₹150 for the same quantity of Baila Fines to ₹5,450 and ₹4,700 respectively. The latest revision reverses part of the price increases effected in the first three monthly revisions.

July output, sales

Sharing July performance numbers, earlier this month, NMDC said iron ore production stood at 4.06 million tonne (MT), an increase of more than 31% compared to 3.09 MT in the year earlier period. Sales for July was lower year-on-year at 3.40 MT (3.46 MT).

For the four months ended July, this fiscal, production was 19.16 MT (15.09 MT), while sales stood at 15.15 MT (14.98 MT).