Posted on 12 Aug 2022
Following three consecutive drops, Indian state-run iron ore miner NMDC has hiked its iron ore prices for August deliveries. This is the first time the miner has increased its iron ore prices since the finance ministry announced a 15% tax on steel exports and a 50% duty on iron ore exports in May, Kallanish notes.
The increase in iron ore prices is attributed to the domestic market recovery, which is seeing a significant rebound in billet and finished long steel prices.
NMDC has increased iron ore quotes by INR 200/tonne ($2.52/t) for 65.5% Fe, 6-40mm lump ore and INR 100/t ($1.26) for 64% Fe up to 10mm fines, effective 11 August.
The miner has pegged its 65.5% Fe, 6-40mm lump ore, and 64% Fe up to 10mm fines prices at INR 4,100/t ($51.61) and INR 2,910/t ($36.51), respectively. The above prices exclude royalty, district mineral fund, national mineral exploration trust, cess, forest permit fee, and other taxes.
NMDC’s iron ore output plunged 33% on-year to 2.05 million tonnes in July, against 3.06mt produced a year earlier, while deliveries dropped 10% to 2.95mt (see Kallanish passim).
NMDC’s Chhattisgarh mine production dropped 46% in July to 1.12mt, against 2.08mt produced last year. Sales declined 40% to 1.38mt. Karnataka-based mine production declined 5% to 0.93mt. Sales, however, grew 60% to 1.57mt.
The firm’s cumulative production and sales in April-July fell 8% and 17% respectively to 10.97mt and 10.62mt.
Source:Kallanish
