NMDC increases high-grade iron ore prices by Rs 150 per tonne

New Delhi: State-owned NMDC Limited on Wednesday increased the price of high-grade iron ore by Rs 150 per tonne to Rs 5400 per tonne.

NMDC is India's single largest producer of iron ore, which is an important raw material required for manufacturing of steel.

In an exchange filing, the company said it has fixed the price of lump ore (ore with 65.5 percent iron content) at Rs 5,400 per tonne.

Follow The PSUWatch Channel on WhatsApp

The prices are effective immediately, NMDC said.

The company did not make any changes in the rate of fines (ore with 64 per cent and less iron content).

In the last price revision announced August 8, NMDC had fixed the rates of lump ore at Rs 5,250 per tonne and that of fines at Rs 4,500 per tonne.

An analyst at markets research firm BigMint said, India's iron ore production has declined amid monsoon-related disruptions, while Odisha, a key producer of the mineral, has witnessed a notable drop in iron ore dispatches during June-July.

"The resulting tightening in ore availability, coupled with improving steel market sentiment, has supported a rise in NMDC," the analyst said.

Follow PSU Watch on LinkedIN

Under the ministry of steel, Hyderabad-based NMDC alone caters to the country's 20 per cent need of iron ore.

NMDC operates four major highly mechanised iron ore mining complexes in India spread across Chhattisgarh (Bailadila sector) and Karnataka (Donimalai sector).

(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)