Dec 07, 2012, 09.42 AM | Source: PTI
State-owned NMDC today said it has kept this month's iron ore prices unchanged for all categories after reducing them in the last two months.
"We have decided to keep the prices of iron ore lumps and fines unchanged," NMDC's acting chairman C S Verma told reporters.
In the last 2 months, the largest domestic iron ore producer had cut prices between by up to 11 per cent for both categories, lumps and fines.
Accordingly, average price for iron ore lumps with 65 per cent iron content are hovering around Rs 5,400 per tonne. Similarly, average price of fines, which have iron content of less than 60 per cent, are at Rs 2,600 per tonne.
However, the company has reduced premium on direct calibrated lumps from 15 per cent to 10 per cent, Verma said, declined to comment further.
Iron ore lumps and fines are vital steel making raw material and most of the Indian steel makers use lumps for their operations.
The two price revisions, of October and November, had come after various domestic steel firms and industry associations had complained to the Steel Ministry of NMDC misusing its dominant position in the domestic market.
The iron ore producer was accused of charging higher prices from the domestic firms, while exporting at lower rates as it had hiked the prices by 8 to 13 per cent for the July- September period, when international prices were down.
A nearly 15 per cent fall in company's net profit as well as in sales during the last quarter was also one of the reasons behind NMDC's decision to rationalise the prices in last two months.