NMDC Cuts Prices Of Lump Ore, Fines By Rs 500/tonne Each, Stock Falls 5%

The country's largest iron ore producer NMDC has slashed the prices of lump ore and fines by Rs 500 a tonne each. Consequently, the company's stock fell over 5% on BSE on Tuesday.

The prices are effective from Tuesday, the company which is also the largest seller of the mineral said in a regulatory filing.

Iron ore is one of the key raw materials used in the manufacturing of steel, and any movement in the prices of the mineral has a direct impact on the rates of steel, which has been a matter of concern for the user industries for past couple of months.

According to the filing, the company has fixed the prices of per tonne lump ore at Rs 3,900 and that of fines at Rs 2,810 a tonne.

While lump is high-grade iron ore having Fe (iron) content above 65 per cent, fine is inferior grade ore which needs beneficiation.

The revised prices are effective from July 12 , 2022, and exclude royalty, District Mineral Fund (DMF), National Mineral Exploration Trust (DMET), cess, forest permit fee and other taxes, the company said.

NMDC had last made a price revision on June 6, when it had fixed the prices of lump ore and fines at Rs 4,400 per tonne and Rs 3,310 per tonne, respectively.

Under the steel ministry, NMDC contributes around 17 per cent to the country's annual iron ore output.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor