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Indian steel makers hoping for 40pct cut in domestic iron ore prices

Indian steel industry is awaiting fall in domestic prices of iron ore by NMDC on account of export duty rise and drop in international rates.

Though NMDC, the country’s largest producer of ore is yet to take a decision on decreasing the prices, the steel industry is upbeat.

Mr Seshagiri Rao joint MD & group CFO of JSW Steel aid that “Internationally, iron ore prices have fallen by USD 50 a tonne and at the same time the Indian currency has depreciated by about 22% to the dollar. Over and above, there is an export duty increase. All this put together, should bring the price below INR 2,000 a tonne for 62.5% Fe grade from the existing INR 3,300 a tonne.”

However, Mr NK Nanda acting CMD of NMDC said that “We have not decided about decreasing the prices of iron ore. The market is speculating about it. In fact, some mines in Orissa have increased their prices due to shortage of ore. There will be some impact of price reduction in the international prices. But, we are yet to take a view.”