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PrintState-owned iron ore producer NMDCBSE 0.33 % has kept prices unchanged for both the varieties of ore - lumps and fines - for the current month, amid continuous slump in demand.
Accordingly, iron ore lumps will be sold at Rs 4,200 a tonne and fines at Rs 2,510 per tonne, company sources said. Iron ore lumps are of a higher grade, with Fe content of 63-65 per cent. Fines are of lower grade, with Fe content of less than 60 per cent.
In past one year NMDC, the largest domestic producer of iron ore, has either reduced the ore prices on a monthly basis or kept them unchanged as demand has been subdued.
The slowdown in Indian economy also had a trickle down effect on the market as growth in steel demand has been subdued due to end-users such as construction, automobiles and fast moving consumer durables running below their optimum capacities.
This has led to continuous slump in iron ore demand, thereby affecting the profits of NMDC.
During the April-June quarter, state-owned miner's profit had declined by 17.51 per cent to Rs 1,572 crore and it is expected to moderate further in the current quarter as NMDC has reduced prices by about Rs 400 tonne in this quarter for lumps.
The company has a total production capacity of 32 MT per annum at its mines in Chhattisgarh and Karnataka. It has kept a target of expanding its iron ore mining capacity to 40 MT by 2014-15.
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