Mining major NMDC has reduced iron ore prices for the second time in the last month. The company has cut the lump ore price by around Rs 300 per tonne, while the price cut on fines is around Rs 200 per tonne.
So put together, these two price cuts would amount to nearly around Rs 400 per tonne to around 500 per tonne.
Even after the price cuts, iron ore prices are still up around 40 to 45 percent from February. The prices saw a huge rally earlier and now the market is witnessing a bit of a pullback in iron ore prices.
What are the key reasons behind the price cuts?
Recently, private miners in Odisha had cut ore prices by roughly around Rs 1,000 and hence, NMDC has replicated that.
The other factors are international iron ore prices that have become a little bit jittery.
Iron ore price cuts in Karnataka is around Rs 500 on lumps. The total sales mix of NMDC is 70 percent fines and 30 percent lumps so that explains why NMDC is a little bit under pressure.
On Friday, the shares of NMDC ended 0.75 percent lower at Rs 178.50 apiece on the BSE.