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Iron ore price negotiations - NMDC will offer extra 5pct discount
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Friday, 02 Jul 2010
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NMDC Ltd has decided to offer additional 5% discount on various types of iron ore being supplied to the domestic consumers. This was decided at the meeting of the board of directors of the company on Wednesday.

The discount, to be effective retrospectively from April and to be in force till September, will be applicable to the prices originally decided to be fixed.

Following the board decision, the prices of various types of lumps for the first quarter will actually be less than the provisional prices earlier fixed for the same quarter.

This is because the NMDC management had proposed for consideration of the board a price structure which already had an in-built provision of five per cent discount. The board decided on an additional five per cent discount. The discount is being offered at a time when the international price of iron ore is virtually on fire.

Inquiries reveal that following the board decision, the per tonne prices of various types of lumpy ore being supplied by NMDC to domestic consumers will be as follows: Ordinary lump INR 3,140, calibrated lump INR 3,770 and high quality lump INR 4,755. However, the price of fines will be a little higher. The price of fines will be INR 2,940 a tonne, higher than the prevailing prices of INR 2,600.

Sources said that “Compared to the FOB price of fine in the international market, which is USD 122.8 a tonne (which excludes freight and other levies), the revised NMDC price is nothing.”

(Sourced from Business Line)

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