Indian mining company National Mineral Development Corporation (NMDC) has reduced iron ore prices by Rs200/mt ($3/mt) for July deliveries. NMDC’s iron ore lumps are priced at Rs7,450/mt ($100/mt) and fines at Rs6,360/mt ($85/mt), according to a company release. The company had previously kept the prices unchanged for both lumps and fines in June.
The recent price drop in iron ore is due to an increased supply in the domestic market including Odisha which is one of the largest iron ore producing states in India.
NMDC has also resumed production from Donimalai mines in March which has added to the supply.
Recently, state-owned National Mineral Development Corporation (NMDC) reported a surge in iron ore production by 34.7pc to 8.89mn mt in Q1 (Apr-June) 2021 from the prior-year period.
NMDC iron ore lumps and fines were priced at Rs2,650/mt ($35/mt) and Rs2,360/mt ($31/mt) respectively in July 2020 and have surged by 180pc since then. Meanwhile, international iron ore prices have increased from $108/mt in June 2020 to an all-time high of $233/mt in mid-May 2021, subsequently softening to the current level of around $215/mt. Indian pellet sponge prices is currently around Rs29,400/mt ($394/mt) ex-works Raipur.