NMDC, India's biggest iron ore producer, today announced a 5.9 per cent (or Rs320) per tonne reduction in the price of iron ore for the current month to align prices with landed cost of imported iron ore.
NMDC lowered prices for 65-per cent Fe grade lumps by 5.9 per cent from December to about $99 per tonne for January, said a source at the company.
NMDC's iron ore lumps, having 65 per cent iron content, were priced at around Rs5,400 per tonne before the reduction.
The state-run miner, which produces about 15 per cent of the iron ore mined in India, however, decided to keep the price of fines, which have less iron content, unchanged at Rs2,610 per tonne.
"Iron ore fine prices have been kept unchanged for the month of January but lump prices have been cut by 5.9 per cent (Rs320 per tonne)," a PTI report quoted a source present at the meeting as saying.
This is a welcome news for Indian steel makers as most of them use lumps for their operations in the absence of the necessary technology to use fined for iron making.