Cut iron ore prices by half due to over-supply: NMDC

A: Prices are always in pressure and we also have corrected our price to that level in India. So yes, last year we used to sell iron ore finds at around Rs 3,200 which we are selling at Rs 1,500 price today so we also have reduced our prices to that extent. Definitely there is a great pressure because there is oversupply in the market of the iron ore and the international price today is hovering around 40-41 which a few days back was around 50. So definitely the pressure is there on the prices and I hope this is the price which should remain because it is very difficult to maintain the price below this.

Q: The targeted EBITDA margins for next one year used to be at 75 percent and now it is around 60 percent.

A: Definitely it was there. It will go down, it will not remain the same. I won't be able to give you exact level right now because fluctuations are going on the market, situation is there but definitely it will be less than what is going on because the prices are constantly going down.

Q: How is your demand side looking, is it going to go slower from here?

A: At present, not heavy demands are there because there are very heavy amount of inventory steel plants. My iron ore requirement depends upon steel industry's demand and there is steel demand in countries is there but a lot of imports are there and inventory at various steel producers like SAIL, JSW Steel, Essar everywhere has increased. Huge inventories are there. They have reduced their productions, demand of iron ore is also less compared to but I hope now with the thrust of a new government on infrastructure in coming months demand should go up.