NMDC shares rise 5% after second price hike for Lump Ore and Fines in October

NMDC shares haven't had the best year after gaining just 6 percent since the start of 2024.

Shares of state-owned NMDC or National Mineral Development Corporation were buzzing in trade, rising 5 percent to Rs 225 on October 23 after the company announced a price increase for its Lump Ore and Fines, a second price hike by the company in October.

NMDC raised the price of Lump Ore by Rs 600, bringing it to Rs 6,350 per tonne, while the price of Fines went up by Rs 400 to Rs 5,410 per tonne, the company stated in a regulatory filing on October 22.

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These latest hikes push NMDC’s prices for Lump Ore and Fines to their highest since May. Interestingly, NMDC’s price adjustments come at a time when global iron ore prices are trending downward. The commodity has slipped by 11 percent, currently trading at SG$101, down from the recent high of SG$114 on October 8.

Earlier in October, NMDC had raised the price of Lump Ore to Rs 5,750 per tonne, and Fines to Rs 5,010 per tonne.

In the first quarter, NMDC posted a consolidated net profit of Rs 1,970.8 crore for the June period, marking a 19 percent rise from Rs 1,652.2 crore in the same period last year, driven by improved realisations. The company’s performance benefited from robust demand for iron ore, a key raw material for steelmaking, as the government boosts infrastructure investments. On a sequential basis, NMDC’s net profit surged by nearly 40 percent.

The company operates four iron ore mines located across Chhattisgarh and Karnataka.

At about 10:40 am, shares of the company were trading at Rs 223.5, higher by 4 percent from the last close on the NSE. NMDC shares haven't had the best year after gaining just 6 percent since the start of 2024.