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NMDC hikes iron ore price for the second time in November to Rs 4000 per tonne

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Mumbai: State-run iron ore producer NMDC Ltd has hiked prices of lump ore for the second time this month by Rs 400 per tonne and that of fines by around Rs 300 per tonne. “Kindly note that the prices of Iron Ore w.e.f. 17-11-2020 has been fixed as Lump Ore at Rs. 4,000/- per ton and Fines at Rs. 3,610 per ton,” the company said in a BSE Filing.

The company also announced a hike on 4th of November where Lump ore was priced at Rs 3,600 per tonne and Fines were priced at Rs 3,310 per tonne. This is an increase of 4% in lumps and a decrease of 4.7% in fines compared with October prices. The series of price hikes indicate a shortage in the iron ore supply in the market, said a secondary steel player requesting anonymity.

India’s top steelmakers also complained their production for the quarter ended September was affected due to a shortage in availability of iron ore and several steel industry bodies have petitioned the commerce ministry to address the issue. “Everyone will be affected. This will also lead to an increase in the steel prices going ahead. While we don’t procure directly from NMDC, other players in Odisha following NMDC have increased prices,” said JSPL’s managing director, V.R. Sharma.

“We are affected due to the high cost of iron ore. Currently we are facing issues in terms of quantity as well as quality. We have also sent representations to the government on this,” said managing director of Kalyani Steel, R.K. Goel to ET. Kalyani Steels Ltd is one of largest secondary steel producers making mild steel, rolled steel products, carbon and alloy steel ingots and billets.

“Price of iron ore has almost doubled. Iron ore pellets were around Rs 5400-5500 per tonne in May and right now it is around Rs 11,000 per tonne. While primary players are increasing steel prices, secondary players are bleeding,” said Vivek Adukia, Chairman, Steel Re-Rolling Mills Association of India. NMDC Ltd has reported a 2% year-on-year fall in October production at 2.43 million tonnes on the back of Covid-related challenges and a heavy monsoon, the company said in a statement.

However, on a month-on-month basis, the company’s October production has gone up by 33% compared to its September production of 1.83 mt. Addressing this issue NMDC said that it is trying its best to increase production to fight the shortage. “Further, NMDC is committed to surpass the production of previous financial year with increased production from Bailadila Mines in Chhattisgarh and likely resumption of operations in Donimalai Mines in Karnataka in the ongoing financial year,” said Sumit Deb.

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