Considering tepid demand in the monsoon season, public sector mining major NMDC reduced prices of iron ore by Rs 100-200 per tonne for July.
While the company decided to cut the price of lumps by Rs 200 per ton, it reduce the price of fines by Rs 100 a ton for July, media reports indicate.
Following the decision, which is reportedly taken at the company’s recent board meeting in Hyderabad, iron ore lumps would be available at Rs 4,500 a ton, while fines at Rs 2,510 per ton.
The company reportedly witnesses subdued off-take of lumps. Also, the price of iron ore fines is said to be falling both in the domestic and international market.
Sales of NMDC rose just 5.83 per cent in Apr-Jun 2013 and it may hit the bottom during monsoon period.
Since October 2012, NMDC adopted the practice of evaluating rates on monthly basis. It did not tweak the prices of iron ore both in May and June.
It, however, lowered the price of lumps (having rich iron content) by seven per cent in April and 2.5 per cent in March. However, it did not change prices of fines (having less than 60 per cent iron content) for some time.
During the June quarter, the firm’s output rose marginally by 0.29 per cent to 6.83 mn t from 6.81 mn t a year ago.
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