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Corona impact: NMDC reduces iron ore prices

The reduction in the prices of iron ore has given a lot of relief to the steel companies, especially sponge iron-based steel companies of Chhattisgarh

Hyderabad: The state-run NMDC Limited, a Navratna PSU under the Ministry of Steel on Wednesday said that it has reduced the prices of iron ore by Rs 400 /- on May 9, and also reduced the price of DRCLO by Rs 470 /- per tonne. Earlier on April 4, NMDC had reduced the price of iron ore by Rs 500/- per tonne and DRCLO by Rs 580/- per tonne. In this way, within a span of one month, NMDC Limited has reduced the iron ore by Rs.900/- per tonne and DRCLO by Rs.1,050/- per tonne. The main customers of DRCLO are Chhattisgarh parties.

"The reduction in prices by NMDC has given a lot of relief to the steel companies and they appreciated this move of NMDC at this difficult juncture," NMDC's CMD N Baijendra Kumar (IAS)

In a press release, NMDC Limited said that the reduction in the prices of iron ore has given a lot of relief to the steel companies, especially sponge iron-based steel companies of Chhattisgarh. NMDC has considered the current market scenario of steel and iron ore due to Coronavirus (COVID-19) and taken informed decision to rationalise the prices.

The company further said that all the major steel mills are running at reduced capacity because of depleted demand of end products.

Some of the merchant miners at Orissa including OMC have reduced the iron ore prices by Rs 500/- per tonne in their recently concluded auction, still, they could not dispose of the entire quantity.

NMDC's CMD N Baijendra Kumar (IAS) said “The reduction in prices by NMDC has given a lot of relief to the steel companies and they appreciated this move of NMDC at this difficult juncture.