With continued slowdown in finished demand in Indian steel sector amid higher availability due to government granting permission to 2 major mines in Odisha, the domestic prices of iron ore have taken a severe beating during January

Major merchant iron ore miners have slashed their prices by INR 800-1000 per tonne in last 30 days. The latest to announce the reduction is Rungta Mines, which reduced fines price by INR 800 per tonne and lumps by INR 650 per tonne. Earlier, Odisha based Serajuddin Mines and Indrani Patnaik had cut their prices by about INR 600 per tonne.

As per media reports, pressure is mounting on Indian iron ore giant NMDC to reduce prices for February sales with several steel makers making representations to bring NMDC prices in line with falling international levels as well as at par with merchant miners in Odisha

NMDC reviews its price every month and the price fixation committee of its board of directors is scheduled to meet in month beginning to decide the price levels

NMDC had extended its December prices for January - iron ore fines at INR 3,060 a tonne and lumps at INR 4,200 a tonne

However, considering the import parity, even at USD 65 CFR China levels, USD INR exchange rate and 2.5% import duty, may lead NMDC to announce a token cut only