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NMDC may double iron ore prices - Report

ET reported that iron ore prices in India could almost double in the next few months as the country’s largest miner National Mineral Development Corporation is planning a steep hike in prices for the new fiscal.

The report cited a person close to the development as saying that NMDC is planning between 80% to 90% hike in iron ore price for 2010-11 when it works out the final prices of its ore in few months time.

A NMDC spokesman declined to comment on the price increase but said that the company has announced a provisional price hike ranging 54% to 58% for the current financial year over the prices prevailing during April 2009.

Mr Rana Som CMD of NMDC said that globally ore prices have already risen or are expected rise by up to 90%. He said that “We are also operating in a market and are commercial organisation. If prices move up, we have to ultimately align our prices with global benchmarks.”

If a 90% price hike is finally approved, the sale price of iron ore fines could to go upto INR 3200 per tonne, while that of good quality calibrated lump ore could go over INR 4,500 per tonne.

(Sourced from ET)