Metal and mining stocks may witness hectic trading with a flurry of activity unfolding. First, the global commodity prices, particularly that of iron ore, have been coming down. However, NMDC hiked the prices by 8-13 per cent to Rs 6,100 a tonne for lumps and Rs 3,000 a tonne for fines for the September quarter. Globally iron ore prices have fallen below $100-a-tonne mark for the first time since 2009. The economic slowdown in China – the country is one of the largest iron ore buyers – has led to huge build up in inventory. This has resulted in sharp fall in prices of iron ore, the key input for steel making. Ore with 62 per cent iron content delivered to the Chinese port slumped 4.9 per cent to $99 a dry tonne on Friday, the lowest since December 2009. Iron ore prices have fallen by about 28 per cent so far this year. Indian steel manufacturers could not benefit from the drop in international iron prices due to sharp depreciation of rupee against dollar. The slowdown in automobile and real estate sectors has also hit steel demand. With no major infrastructure investment taking off, steel demand is likely to remain under pressure. Second, the Supreme Court this week may provide some relief by partially lifting the ban on mining in Karnataka.

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