Multiple triggers to drive NMDC re-rating, firm to consider share buyback

While recent hikes have pushed iron ore prices to 24-month highs, analysts also expect sustained improvement in operating performance

Recovery in domestic steel demand and the rise in steel prices have improved the outlook for India’s largest iron ore producer, NMDC. The company announced a Rs 200 per tonne price increase for its November produce, helping prices of iron ore fines and lumps rise to Rs 3,310 per tonne and Rs 3,610 per tonne, respectively.

With this, NMDC’s iron ore prices have risen by Rs 1,350 a tonne since June end after price cuts of about Rs 900 a tonne during April and May to push volumes impacted. At current levels, prices are at a 24-month high.

While India’s steel production