Posted on 04 Jul 2022
Sales from India's largest iron ore producer, state-controlled NMDC,dropped in June to its lowest since August 2020, as an export duty hike weighed on steel demand and prices.
Sales in June declined by 40pc on the year and by 28pc on the month to 1.90mn t.
NMDC's June output was 2.57mn t, its lowest since October 2020 and 14pc lower than the previous year and 20pc lower on the month.
The multi-month drop in sales and output is on the back of a 15pc export duty imposed by the Indian government on several steel products in May, which has upended demand and dragged steel prices down.
Domestic steel mills are also expected to cut production in July on poor domestic demand and limited exports. JSW Steel's JSW Ispat Special Products Limited brought forward the planned shutdown of its blast furnace at Raigarh in Chhattisgarh last month.
The producer had sharply reduced iron ore prices in June by 1,100 rupees/t ($14/t) to Rs4,400/t for lump with 65.5pc Fe content and to Rs3,310/t for 10mm fines with 64pc Fe.
NMDC aims to produce 46mn-47mn t in the current 2022-23 fiscal year ending 31 March, compared to 42mn t in the last fiscal year.
The daily Argus ICX 62pc iron ore index was at $115.45/dry metric tonne on 1 July, lower by 48pc from a year earlier and by 15pc on the month.
Source:Argus Media
