Relief For Domestic Steel Firms: NMDC Slashes Iron Ore Price

Owing to falling global prices and less demand, National Mineral Development Corporation (NMDC), a state-run iron ore miner, has cut down price of lumps by Rs 200 a tonne and Rs 100 a tonne for fines for December 2014.

The current price of lump ore stands at Rs 4,200 a tonne. On the other hand, now the cost of fines has come down to Rs 3,060 per tonne.
Earlier in November, the largest iron ore producer in the country, had slashed the price for lumps by Rs 200 a tonne. However, the price of fine remained unchanged during the same period.

Due to lesser demand of iron ore from China, which is the largest producer of steel in the world, the prices have plunged to a five-year low at around $70 a tonne.

Various domestic steel firms would benefit from the current price cut, as it will not only help them secure a better margin, but would also create a better position for them to compete with other steel companies based in Korea, Japan and China.