You are using an older browser version. Please use a supported version for the best MSN experience.

NMDC hikes iron ore prices by 7-9%

LiveMint logoLiveMint 04-06-2014 Ruchira Singh

Mumbai: NMDC Ltd, the largest Indian iron ore mining company, has raised iron ore prices by 7-9%, a senior company official and two steel industry executives said, as a shortage hits the market owing to a drop in production in key states facing legal and regulatory action on illegal mining and environmental degradation.

“The price has been hiked keeping in view the shortage in production,” said a senior official of NMDC, who did not wish to be named. “There are stoppages in iron ore mining in Odisha and even in Goa and Karnataka.”

State-run NMDC raised prices of iron ore fines by 8.59% to `3,160 per tonne. The price of iron ore lumps was raised by 6.98% to `4,300 per tonne. The new prices take effect immediately.

The company official said the last time NMDC hiked rates was in December, which was followed by a downward revision in April.

Two steel industry officials, who also spoke on condition of anonymity, said they were displeased by NMDC’s price hikes, which come at the time when the industry is looking to an economic revival.

NMDC has three mines in Odisha and Chhattisgarh and in the fiscal year ended 31 March, the company produced a record 30 million tonnes (mt) of the steel-making ingredient. This year, it is targeting increasing production by a couple of million tonnes and to also add a new mine in Chhattisgarh.

The company will join the league of steel makers in FY16-17 when it is slated to commission its 3mt steel plant in Chhattisgarh.

More From LiveMint

image beaconimage beaconimage beacon