Mining major NMDC has increased iron ore prices by ₹200 per tonne of lump ore and ₹100 for the same quantity of fines.
Effective August 11, the new prices are ₹4,100 for lump ore and ₹2,910 for fines, the State-owned company said on Thursday. This is the first upward revision by NMDC this fiscal.
From ₹6,100 for lump ore and ₹5,160 for fines on April 1, the prices had been on a decline. During the previous revision on July 12 they were set at ₹3,900 and ₹2,810 respectively.
The prices, a reflection of the steel demand, however, had firmed up in the first quarter of CY22. The April prices for the lump and fines were ₹1,200 and ₹1,100 more respectively than the ₹4,900 and ₹4,060 fixed on December 28.
“Demand for iron ore moves in tandem with steel demand,” CMD Sumit Deb had said in the AGM recently.
“The Russia-Ukraine conflict and the continued impact of COVID-19 in China have been dampening demand for steel in 2022. Consequently, demand for iron ore has been declining and prices have been volatile with a downward bias in June and July 2022. Thus, the outlook for the iron ore market is not encouraging in short term,” Mr. Deb said.
“The long-term demand for iron is, however, expected to be positive,” he added.