New Delhi: State-owned NMDC hiked the prices of iron ore lumps and fines by Rs 300 per tonne with immediate effect on Wednesday. The announcement from the country's largest iron ore miner has come after the government removed export duty on iron ore and steel. "The price for a tonne of lump ore or high-grade iron ore having Fe (iron) content 65.53 percent and above has been fixed at Rs 4,100. While the rate of fines or inferior grade ore with 64 percent and less Fe content has been increased to Rs 2,910 per tonne," NMDC said in a BSE filing. "The prices are effective from November 30 and exclude royalty, district mineral fund (DMF), National Mineral Exploration Trust (DMET), cess, forest permit fee and other taxes," the company said.
In the last price revision announced on November 17, NMDC had fixed the rate of lump ore at Rs 3,800 per tonne and that of fines at Rs 2,610 a tonne with immediate effect.
Iron ore is one of the key raw materials used in the manufacturing of steel and any movement in its prices has a direct impact on the rates of the steel, an alloy widely used in segments like construction, infrastructure, automobile and railways, among others.
On November 19, the government removed the export duty on steel items and iron ore to nil, six months after the imposition of the levy on May 21.
According to research firm SteelMint India, "Prices have been increased on account of duty withdrawal on iron ore and pellets. The export business which has stalled after May 2022 has restarted. With China expected to perform better in the next quarter, global iron ore prices should remain firm."