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NMDC may reduce iron ore prices

Iron ore producer National Mineral Development Corporation Limited (NMDC) is likely to reduce the prices of ore during this week.

A decision to this effect is expected to be taken by the board of the state owned minor which is scheduled to meet in Chennai on Thursday.

NMDC sources, however, told Business Standard that the drop in prices would not be much.

According to them, there could be some reduction in the price of fines but very marginal drop in the price of iron ore lumps which have a good demand in the domestic market.

They said that even though there is no case for a drop in the price of lumps, the public sector undertaking might consider a slight reduction in price in the light of a significant drop in international prices of ore.

Ten days ago, NMDC's in charge chairman and managing director, Mr NK Nanda, had said that the price drop was still being examined by the company.

Currently, NMDC is selling lumps at around INR 5,000 and Fe grade ore at INR 3,300 a tonne. On the other hand, the price of lumps in the international market is hovering around INR 7,000 a tonne, about INR 1,500 less than the price prevailed during the second quarter of this financial year.