India’s state-run iron ore miner NMDC Limited has slashed the price of iron ore lumps by INR 750/mt ($10/mt) and that of fines by INR 200/mt ($3/mt) with immediate effect, a regulatory filing by the company said on Wednesday, December 1.
Following the reduction, the effective price of lumps for December deliveries works out to INR 5,200/mt ($69/mt) and that of fines at INR 4,560/mt ($61/mt) ex-pithead.
The new prices are exclusive of royalty and mandatory payments to District Mineral Fund (DMF), National Mineral Exploration Trust (NMET), cess, forest permit fees and other statutory payments.
For November, the miner rolled over iron ore prices and customers have been waiting for a correction, indicating that the decline in the international market was sharper than in the local market in India. The recent decrease in iron ore prices may slightly ease the pressure from the cost side on some large steel producers, which are dependent on merchant iron ore.
$1 = INR 75.20