 "Assocham seeks 25% cut in iron ore prices from NMDC")
“Asian economies like China, Japan and Korea have become more competitive and are exporting steel to India at throwaway prices due to drop in Platts iron ore index, thereby creating huge problem in the country and posing threat to the survival and sustainability of domestic steel industry,” noted Assocham in a communication addressed to Steel and Mines Minister Narendra Singh Tomar.
“India’s leading iron ore producer, National Mineral Development Corporation (NMDC) is charging 25 per cent higher charges as compared to other iron ore miners based in Odisha that is adversely impacting domestic steel industry,” said D S Rawat, national secretary general of Assocham.
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Though NMDC has reduced prices of iron ore lump and fines (from January) that are in line with those prevailing both in Odisha and international market, the state-run miner is still charging much higher prices for iron ore fines.
“Suppliers from Odisha are offering 63 per cent iron ore fines at the rate of Rs 2,150 a tonne in comparison to Rs 2,340 (together with Rs 351 for royalty) charged by NMDC that is higher by about Rs 500-600 a tonne,” Assocham said.
Moreover, iron ore prices in international market have been dropping continuously and it had also dropped substantially in March this year.
The Assocham letter further highlighted: “The Platts index in global market has fallen from $63 a tonne to $54 a tonne, i.e., by Rs 550 a tonne approximately, from March 1 to March 26.”
India’s steel industry is reeling under severe pressure, on account of sluggish economic recovery and various factors impacting external and internal environment such as higher prices of iron ore due to shortage in the country owing to Supreme Court’s intervention.