Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

National Mineral Corporation Limited (NMDC) reported a drop in iron ore sales by 28pc in Q1 FY2020-21 to 6.27mn mt from prior-year period with production also dropping by 22pc to 6.6mn mt in this period.


The Indian company claimed that COVID-19 and the nationwide lockdown had a significant impact on iron ore production and sales. It expressed positive market sentiments in the upcoming quarters. 


Almost all leading steelmakers across India have ramped-up production to above 80pc from July which has increased the consumption of iron ore.


NMDC will revise iron ore prices looking at the high international price which recently touched $129/mt cfr China — a 6-year high in spot market.


The company’s profit after tax fell by 55pc to Rs5.33bn and revenue by 41pc to Rs19.38bn in the first quarter of fiscal year 2019-20 compare to prior year. 


Demerger of Nagarnar Iron & Steel Plant:

NMDC’s board approved a proposal to de-merge its upcoming Iron and Steel plant (NISP) at Nagarnar in Chhattisgarh. The plant has an annual production capacity is 3mn mt and its first greenfield project is expected to commission by next year.

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