Posted on 03 Jan 2022
December sales at India's largest iron ore producer state-controlled NMDC declined on the year on weaker domestic demand for steel, even as production expanded.
NMDC's iron ore sales fell by 4pc on the year to 3.4mn t in December but rose by 18pc on the month, while production gained 2.3pc on the year and 18.3pc on the month to 3.95mn t.
Domestic demand for steel weakened last month, weighed by higher prices and a construction ban in the northern states of India.
The producer has also lowered its monthly domestic prices for January by 300 rupees/t ($4/t) to Rs4,900/t for lump with 65.5pc Fe content and by Rs500 to Rs4,060/t for 10mm fines with 64pc Fe.
April-December output rose by 29.7pc on the year to 28.32mn t, while sales gained 27.4pc to 28.36mn t. NMDC aims to produce 44mn-45mn t in the fiscal year to 31 March 2022 and 50mn t in the next fiscal year. It produced 35mn t in 2020-21.
The daily Argus ICX 62pc iron ore index stood at $120.05/dry metric tonne (dmt) cfr Qingdao on 31 December, down by 49pc from a record high of $235.55/dmt on 12 May, but up by 38pc from over a year-low of $87/dmt in the middle of November.
Source:Argus
