Weak volumes, iron ore demand take sheen off NMDC's Q3 performance

While domestic outlook was seen improving post recent iron ore price hikes and rising steel output, coronavirus could curb gains

NMDC’s performance for December 2019 quarter (Q3) reflects the impact of subdued realisations and weak demand for iron ore, a key ingredient to produce steel.

Production and dispatches of iron ore, which had remained subdued in September quarter due to monsoon, rebounded in Q3 but were still down compared to the year ago period due to continued disruption at NMDC’s Donimalai mines. Withdrawal of monsoon enabled India’s largest iron ore miner to deliver a 71 per cent sequential rise in production at 8.58 million tonnes (MT), but it was 10 per cent lower on year-on-year (YoY) basis. Sales at 8.41