State-owned National Mineral Development Corporation (NMDC) has reduced iron prices for both, lumps and fines by Rs500/mt effective April 4.
After the price cut, iron ore fines will be priced at Rs2,360/mt and lumps at Rs2,360/mt as per the recent press release by the company. These revised prices are excluding royalty, DMF, NMET, cess, forest permit fee and other taxes.
The decrease in iron ore prices is driven by a drastic fall in domestic steel demand close to nil on the back of the COVID-19 lockdown announced by the Indian government, according to a sponge iron manufacturer in Raipur.
The company has also reported a fall in sales by 25pc to 2.7mn mt in March from the prior year. Additionally, the COVID-19 jolt to the Indian economy has also affected drivers of steel demand, the infrastructure, auto and real estate sectors. Thus, by curtailing prices, the miner attempts to boost sales.
The company’s iron ore production also fell by 32pc to 2.8mn mt in March from the prior-year period. Earlier on March 16, NMDC has decreased lumps and fines prices by Rs50/mt.