 "NMDC cuts iron ore lump rate by Rs 300 per tonne to Rs Rs 3,900 per tonne")
State-owned NMDC on Tuesday said it has slashed iron ore lump and its fines rates by Rs 300 and Rs 450 per tonne, respectively.
It has fixed the price of lump ore at Rs 3,900 per tonne and fines at Rs 3,560 a tonne, the country's largest iron ore miner said in a regulatory filing.
Lump ores or high-grade iron ores contain 65.53 per cent Fe (iron), while fines are inferior-grade ores with 64 per cent and less iron content.
In the last price revision announced on April 29, NMDC fixed the rate of the lump at Rs 4,200 per tonne and that of fines at Rs 4,010 a tonne.
The prices are effective from May 29 and exclude royalty, district mineral fund (DMF), National Mineral Exploration Trust (DMET), cess, forest permit fee and other taxes, the company said.
According to research firm SteelMint, "This price cut has brought NMDC iron ore prices to a 6-month low. The reduction is attributed largely to falling steel prices, which is a result of a weak global market. However, in the domestic market steel prices are higher compared to global prices. A price correction in the local market is expected soon".
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Iron ore is one of the key raw materials used in the manufacturing of steel, and any movement in its prices has a direct impact on rates of steel, an alloy widely used in segments such as construction, infrastructure, automobile and railways.
Hyderabad-based NMDC (formerly known as National Mineral Development Corporation) under the Ministry of Steel contributes around 17-20 per cent to India's total iron ore production.