NMDC hikes iron ore rates by Rs 400/tonne

Iron Ore rate hike: The country's largest iron ore miner NMDC on Tuesday increased the rates of lump ore and fines by Rs 400 per tonne with immediate effect.

The company has revised the price of lump ore -- containing 65.5 per cent iron content -- to Rs 5,750 per tonne from Rs 5,350 a tonne fixed on August 8.

The rate of fines for low-grade ore, with 64 per cent and below iron content, has been hiked to Rs 5,010 per tonne from Rs 4,610 per tonne fixed in August this year.

The prices are effective from October 1 and include royalty and contributions towards the district mineral fund (DMF), and National Mineral Exploration Trust (DMET). It excludes cess, forest permit fees and other taxes, the company said. Iron ore is one of the key raw materials used in the manufacturing of steel, and any movement in its prices has a direct impact on rates of steel, an alloy widely used in segments like construction, infrastructure, automobile and railways.

According to BigMint, the price hike is in line with the rise of global iron ore prices after China recently announced a stimulus to boost its economy. "The rates of iron ore in the global market have moved up by around 15-20 per cent in the last one week after the announcement of a financial package by the government in China," the markets research firm said.

Hyderabad-based NMDC is India's largest iron ore mining company catering to the country's up to 20 per cent demand for steel-making raw material.