The iron ore miners and the steel producers have agreed to enter into long- term contracts for the product even as the steel ministry on Friday pitched for contract value between the two parties to be benchmarked according to prices of the alloy by state-run NMDC.
?We do not want to suggest any price band. Prices should be in lines of NMDC,? steel secretary PK Rastogi said on Friday. NMDC Ltd has long term contracts with leading steel firms across the globe. It works out the price band on the basis of increase and decrease in exports and rupee/dollar parity.
The iron ore firms under the aegis of Federation of Indian Mineral Industries and steel firms on Friday had the first round of discussions to work out the modalities and the feasibility of entering into long-term contract between the two parties. ?We do not have any problem in entering into long-term contract with the steel firms.? FIMI secretary general RK Sharmatold FE.