Muted near-term iron prices likely to keep NMDC stock under pressure

Other triggers such as demerger/listing of steel plant unlikely this year

Prices of iron and steel have seen high volatility since the Russia-Ukraine war (February 2022) which also coincided with China’s lockdown and shutting down of high-emission sectors. As a result, there’s a combination of supply chain issues and weak demand.

In addition, the Indian government imposed stiff export duty, which has led to over-supply in the domestic market. Prices initially spiked due to fears of shortages in March and April but have since declined sharply and are now below Jan 2022 levels across all categories, including hot rolled coils, rebar, iron ore and a key input, coking coal.

The impact