State-owned miner National Mineral Development Corporation (NMDC) today announced a reduction in the prices of iron ore lumps and fines by 6.15 per cent and 20.32 per cent, respectively, under pressure from domestic steel makers.
With the reduction, prices of iron ore fines will come down by Rs500 per tonne to Rs1,960 per tonne while iron ore lumps will cost Rs200 less per tonne at Rs3,050 per tonne.
NMDC had last month fixed the price of iron ore lumps at Rs3,250 a tonne and Rs2,460 a tonne for fines.
Recently, industry body Assocham had urged the centre to reduce the prices to help domestic steel industry become competitive.
NMDC said the revised prices will be effective from today (April 18) till the end of this month.
The company was under pressure after it kept the prices unchanged in April amid a huge fall in global prices.
It may be noted that global prices of iron ore have come down by $47 per tonne following a fall in demand from China, the largest iron ore consumer.
India which earlier used to be the world's third largest supplier of iron ore, saw a huge jump in imports, which touched a record 15 million tonnes in 2014-15, amidst declining iron ore prices and mining ban in mineral rich states.
With a further drop in iron ore prices in the international market, analysts expect a further drop in domestic prices of the steel making raw material.