NMDC, merchant miners to benefit from global iron ore price rally

Revival of Chinese steel production has bolstered demand; simultaneously, disruptions in Brazil after soaring Covid cases has crimped supplies, raising prices

NMDC, the country’s largest commercial iron ore producer and others are set to benefit from a surge in global seaborne iron ore prices. The rally in iron ore prices stems primarily from the supply crunch in Brazil, which is still coping with the spike in Covid-19 cases and will calm the frayed nerves of iron ore miners in India at a time when domestic demand has gone downhill.

International iron ore prices are now trending over $100 per tonne, clocking a year-on-year (YoY) gain of 10 per cent. The revival of Chinese steel production has bolstered demand for the key steel