NMDC hikes iron ore prices

State-owned NMDC on Tuesday announced that it raised the prices of lump ore by Rs250 a tonne and fines by Rs350 per tonne with immediate effect.City-based NMDC is India’s largest iron ore mining company catering to 20 per cent demand for the steel-making raw material.

NMDC in a regulatory filing said “it has revised the cost of lump ore to Rs6,450/a tonne and fines to Rs5,610 per tonne. Lump ore or high-grade iron ore contains 65.5 per cent Fe (iron), while fines are inferior grade ore with 64 per cent and less Fe content. The prices are effective from May 28 and include royalty and contributions towards district mineral fund (DMF), National Mineral Exploration Trust (DMET). It is excluding Cess, forest permit fee and other taxes, the company said.

It reported a 38 per cent fall in consolidated net profit at Rs1,415.62 crore for the March quarter on account of increased expenses. The announcement has come a day after the company announced its quarterly results.

In the last price revision announced on April 29, NMDC fixed the rate of the lump at Rs6,200 per tonne and that of fines at Rs5,260 a tonne. Iron ore is one of the key raw materials used in manufacturing of steel, and any movement in its prices has a direct impact on rates of steel, an alloy widely used in segments such as construction, infrastructure, automobile and railways.