Robust prospects fortify NMDC stock; India's steel demand may stay strong

NMDC's FY24 iron-ore production (April-November) stood at 27.3 million tonnes (MT) up 17.1 per cent year-on-year (Y-o-Y) while sales volume grew 24.8 per cent Y-o-Y to 28.1 MT

A recent price hike from NMDC has sparked interest in the stock. It is the key player in the iron ore market and its fortunes are tied to steel offtake and prices.

Global commodity markets have seen a rise in iron and steel prices based on two expectations.

One is that global growth excluding China will improve in this calendar year, as inflation is tamed.

The second is the massive stimulus measures in China will help the world’s second-largest economy accelerate growth rates and pull it out of a near-deflationary cycle.

On the domestic front, India’s demand for steel will