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India domestic iron ore price may drop 20-40%

It's reported that Indian steel industries expect the domestic ore prices may drop 20% to 40%, due to iron ore export tax hike and rupee depreciation against the U.S. dollar. However, the largest iron ore producer NMDC manufacturers has yet to make a decision to cut prices .

JSW Steel Managing Director and Chief Financial Officer SeshagiriRao said international mineral prices has decreased by USD50/ton from the previous month, while the rupee against the U.S. dollar depreciated about 22%, combined with ore export tax hike, 62.5% iron ore price will drop to 2,000 rupees / ton from the current 3300 rupees / ton.

JSW is seeking to complete production target for this fiscal year - 7.5 million tonnes, and lift up capacity utilization to above 68% in December.

However, the Indian mining industry coalition believes that the current price of iron ore, compared with international prices remains at a low level and will decline not too much on strong demand in long term, maximum drop from USD67/ton to about USD60/ton.