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3Novices : NMDC lowers iron ore prices by 8-9% amid supply glut, demand slump

NMDC, the central government-owned mining entity Ltd, cut its iron ore prices by eight to nine per cent with immediate effect, due to excess supply and a slump in demand from Indian steel producers.The price of ore lumps is now down 8.2 per cent to Rs 2,225 a tonne and of ore fines by 9.15 per cent to Rs 1,985 a tonne. With the monsoon having spread, steel demand is going to remain subdued for the next three months because of lack of work on construction and infrastructure projects. Another reason for the price cut is oversupply of ore, following weak export viability and independent steel mills participating directly in iron ore mine auctions.”NMDC’s largest consumers are JSW Steel and Essar Steel in both Karnataka and Chhattisgarh. The iron ore price cut would benefit these mills proportionately. Since Tata Steel and Steel Authority of India have their own captive mines, with adequate capacity to support their production, they are unlikely to get any benefit,” said Goutam … http://ift.tt/2sNwdNvTwitter 3Novices

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