Public sector NMDC on Monday said it has finalised the deal to supply iron ore to Japanese and South Korean steel units at almost double the previous rate. The company had last year agreed to supply iron ore lumps to the steel mills at around $61 a tonne for 2009-10.
??We have concluded a pact with South Korean and Japanese steel mills for supplying iron ore in the present quarter. We have got a 94-99% increase in rates over the previous contracted prices,?? NMDC CMD Rana Som told reporters here.
Som, however, declined to give further details saying the final price is still being worked out.
As against the earlier practice of entering into an yearly contract the NMDC would now supply on quarterly basis in a bid to align prices with global spot market. Earlier this year, global miners such as Rio Tinto and BHP Billiton entered into quarterly contracts with Japanese steel majors, increasing the prices by upto 85% for the first quarter.