NMDC gains 5% on higher iron ore prices; stock surges 24% in a month

The rally in global iron ore prices augurs well for NMDC as it provides the domestic iron ore major likely room to increase its prices further, thereby auguring well for the company.

Shares of NMDC climbed 5 per cent to Rs 113.50 on the BSE on Friday on reports that the benchmark iron ore prices have crossed the $150/tonne mark. Iron ore prices are at their highest level since 2013 and are currently at $157/tonne.

According to a Bloomberg report, futures in Singapore have surged almost 70 per cent this year, hitting their highest since trading started in 2013, as China’s stimulus-led rebound fuels steel output and consumption. The rally received an added boost from Vale SA’s cut to annual production guidance last week, while the first quarter is likely to