Holding the price of iron ore for the last four months, state-owned miner NMDCBSE -2.93 % has reduced the rate of lumps by Rs 200 per tonne for November but rolled over the last month's price for fines.
he price of lump ore, which contains more iron and is used mostly by domestic steel makers, now stands at Rs 4,400 a tonne, a top company official said.
The prices of fines, having lower iron content, remains at Rs 3,160 a tonne.
NMDC, which reviews prices every month going by domestic demand, had not tweaked rates in the last four months starting from July. There has been a steep fall in global prices which have gone down to hover around $80 per tonne now.
The drop in global prices and inadequate availability of the input domestically have forced JSW SteelBSE -0.79 %, a major customer of NMDC, to import the raw material.
During the July-September quarter of the current fiscal, NMDC sold 72.69 lakh tonnes iron ore, registering a growth of about 12 per cent over 65.04 lakh tones in the second quarter of the last fiscal.
The iron ore sales during the first six months of the current year stood at 158.59 lakh tonnes registering a growth of about 15 per cent against 137.56 lakh tonnes during the corresponding period last year.
The price cut might impact net sales realisation of the company a little during the current quarter, although it is confident of bettering the bottomline for the entire fiscal.
NMDC had clocked Rs 6,420 crore net profit in the 2013-14 fiscal. In the first two quarters of the current fiscal, it has reported Rs 3,482 crore. The company also hopes to improve its sales volume to around 32 million tonnes for the current fiscal.
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