Economy

NMDC cuts iron ore prices by 2-11% for Oct

| | Updated on: Oct 09, 2012
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NMDC cut iron ore prices by 2-11 per cent for October, in a development that will provide some relief to steel producers.

Steel makers have been seeking a reduction in iron ore prices, especially as global prices have softened in recent weeks.

The steel companies may pass on a slice of the ore price reduction to their customers.

In another significant move, NMDC has decided to fix iron ore prices for domestic customers on a monthly basis from this month.

The iron ore miner has been following a three-month pricing formula based on domestic demand and supply of the critical raw materials.

International consultant

NMDC is in the process of hiring an international consultant to recommend a new iron ore pricing mechanism, after studying the different models followed in other countries.

For the July-September quarter, the company had increased prices by about 8-13 per cent and about Rs 250-400 a tonne for the previous quarter, despite global prices remaining more or less stable for the last three months.

C.S. Verma, In-charge Chairman, told mediapersons last month that ore prices are expected to remain under pressure for the next six months.

Iron ore prices have fallen from an average of about $200 a tonne a year ago to about $150 six months ago and below $100 a tonne last month.

amitmitra@thehindu.co.in

Published on March 12, 2018

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