India’s largest iron ore miner state-run NMDC Limited has reduced domestic sale prices for iron ore lumps and fines effective from August 20, a company regulatory filing said on Thursday, August 22. Traditionally, the producer announces its prices at the beginning of the month, but taking into account current market conditions the miner has decided to take this step.
NMDC has lowered its price of iron ore lumps from INR 3,100/mt ($43.3/mt) to INR 2,900/mt ($40.9/mt) and its price of iron ore fines by INR 200/mt ($2.8/mt) to INR 2,660/mt ($37.15/mt), all prices being ex-works, according to the regulatory filing.
Sources said that the reduction in prices will negatively impact the miner’s aggregate revenues not only because of lower realizations from sales but also because the company will not be able to compensate for such a loss in sales revenues by realizing higher volumes in the market due to the slowdown in demand and following the cancellation of its mining lease for Donimalai iron ore mines by the state government of Karnataka in southern India, yesterday, August 21.