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NMDC on May 9 reduced the price of iron ore by ₹400 per tonne and that of DRCLO (directly reduced calibrated lump ore) by ₹470 per tonne.
On April 4, the mining major had reduced the price of iron ore by ₹500 per tonne and DRCLO by ₹580 per tonne. In a span of one month, it has reduced the iron ore price by ₹900 per tonne and DRCLO by ₹1,050 per tonne.
The main customers of DRCLO are based in Chhattisgarh. The price cuts offer a lot of relief to steel companies, especially the sponge iron-based ones of Chhattisgarh, said the firm.
NMDC said it considered the current iron and steel market scenario before taking an informed decision to rationalising prices.
“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,” said N Baijendra Kumar, CMD, NMDC, in a statement.
It may be noted that all the major steel mills are running at reduced capacity because of depleted demand for end-products. Some of the merchant miners at Odisha including OMC reduced iron ore prices by ₹500 per tonne in their recently concluded auctions and could still not dispose of the entire quantity.
Shares of NMDC closed at ₹75.00 on Wednesday, up 5.63 per cent, on the BSE.
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