Indian state-run miner NMDC Limited has increased domestic sale prices for iron ore lumps and fines for the second time in November, according to a regulatory filing by the company.
NMDC said that it was increasing the price for lumps by INR 400/mt ($5.36/mt) and the price for fines by INR 300/mt ($4/mt) with immediate effect.
With the latest price hike, the effective sale price for lumps for current month deliveries will be INR 4,000/mt ($53.61/mt), with the price for fines at INR 3,610/mt ($48.39/mt) ex-mine.
All prices are exclusive of levies and taxes applicable like royalties, cess, District Mineral Fund (DMF) and National Mineral Exploration Trust (NMET) and Goods and Service tax (GST).
In early November, the company had raised its iron ore prices by INR 150/mt ($2/mt). The consecutive price hikes during November reflect the shortage of iron ore in the domestic market.
“Everyone will be affected. This will also lead to an increase in steel prices going ahead. While we don’t procure directly from NMDC, other players in Odisha are following NMDC and increasing prices too,” V R Sharma, managing director of Jindal Steel and Power Limited (JSPL), said.
“We are affected due to the high cost of iron ore. Currently, we are facing issues in terms of quantity as well as quality. We have sent representations to the government on this,” R K Goel, managing director of Kalyani Steel, said.
$1 = INR 74.50