High realisations to improve NMDC outlook; iron ore volumes to grow 5-6%

NMDC, a few days ago, has taken a price hike of Rs 200/tonne for iron ore lumps and Rs 150/tonne for iron ore fines

Mining major NMDC's stock, which had been on a downtrend owing to weak iron prices since the beginning of the year, has bounced back in August with gains of about 30 per cent. 

The reason is a rebound in international iron-ore prices, strong demand outlook led by rising steel production, and expectations of more price hikes. Iron-ore production, which remained subdued in the monsoon season, is now expected to pick up as well. Better realisations and volumes should help support stock prices.

The 62 per cent Fe grade iron-ore prices ex-China that stood at more than $78 a