Posted on 17 Nov 2021
India's largest iron ore producer, state-controlled NMDC, says domestic iron ore prices will remain supported on robust domestic demand, despite sliding international prices.
The producer's output rose by 56pc on the year to 8.77mn t in the July-September quarter, and sales rose by 36pc on the year to 8.99mn t during the same period.
NMDC kept its prices unchanged in November, having cut them in the previous four consecutive months. Its monthly domestic prices stood at 5,950 rupees/t for lump with 65.5pc Fe content and at Rs4,760/t for 10mm fines with 64pc Fe. Prices are still higher against a year earlier by 49pc and 32pc respectively.
The producer's iron ore prices are at a 15-20pc discount to import parity prices, it said, adding that it does not see any impact on its demand as some medium and small businesses book imports.
NMDC aims to produce 44-45mn t in this fiscal year ending March 2022 and about 50mn t in the next financial year, and does not see prices coming under pressure as domestic steel companies ramp up capacities at their captive mines on the back of firm demand and potential exports.
The demerger of its Nagarnar steel plant in Chhattisgarh will take place in the fourth quarter of this fiscal year, the company said.
NMDC's 1.2mn t/yr pellet plant in Donimalai, Karnataka has produced 100,000t of pellets so far this year because of technical glitches in the beneficiation process, but the company said the issues have been fixed and the plant will run smoothly going forward. The company's two coal mines Tokisud and Rohne in Jharkhand are awaiting state government clearances.
The daily Argus ICX 62pc iron ore index at $88.85/dry metric tonne (dmt) cfr Qingdao on 15 November fell by about 62pc from its all-time high of $235.55/dmt on 12 May and by 28pc from a year earlier, on poor demand amid intense steel output cuts in China.
Source:Argus
