State-owned NMDC on Wednesday hiked the prices of iron ore lumps and fines by Rs 300 per tonne with immediate effect. The announcement from the country’s largest iron ore miner has come days after the government removed duty on the exports of the mineral.
The price for a tonne of lump ore or high-grade iron ore having Fe (iron) content 65.53 per cent and above has been fixed at Rs 4,100. While the rate of fines or inferior grade ore with 64 per cent and less Fe content has been increased to Rs 2,910 per tonne, NMDC said in a BSE filing.
The prices are effective Nov 30, 2022, and exclude royalty, district mineral fund (DMF), National Mineral Exploration Trust (DMET), cess, forest permit fee, and other taxes, the company said.
In the last price revision announced November 17, NMDC had fixed the rate of lump at Rs 3,800 per tonne and that of fines at Rs 2,610 a tonne with immediate effect.
Iron ore is one of the key raw materials used in the manufacturing of steel, and any movement in its prices has a direct impact on the rates of the steel, an alloy widely used in segments like construction, infrastructure, automobile and railways, among others.
On November 19, 2022, the government removed the export duty on steel items and iron ore to nil, six months after imposition of the levy on May 21, 2022.
According to research firm SteelMint India, “Prices have been increased on account of duty withdrawal on iron ore and pellets. The export business which has stalled after May 2022 has restarted. With China expected to perform better in next quarter, global iron ore prices should remain firm.” Hyderabad-based NMDC (formerly known as National Mineral Development Corporation) is India’s largest producer and seller of iron ore.
The company, under the Ministry of Steel, contributes around 17 per cent to the country’s annual iron ore output.