India's largest iron ore miner NMDC Ltd. increased prices in the biggest jump in 13 months, tracking the global trend.
The company raised prices of lump iron ore by 13 percent over October to Rs 2,600 a tonne – the sharpest increase since the 23 percent jump in October last year. The miner also increased the prices of fines by 10 percent to Rs 2,260 a tonne. It had lowered both the prices by 4-5 percent last month.
Spot iron ore prices rose 15 percent at $75.06 a tonne in November. That compares with a marginal rise of 1.5 percent in October and a sharp decline of 17.5 percent in September.
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The increase follows the price hike by private merchant miners in Odisha, while higher sponge iron and imported scrap prices also provided room, Jatin Damania, an analyst from Kotak Securities. “The prices may have to be revised lower due to the prevailing oversupply.”
JM Financial Research agreed. The merchant iron ore supply in India is in surplus and demand is expected to weaken once more captive mines are auctioned, the brokerage said. Given the increasing domestic supplies and softening global prices, the price outlook for NMDC is weak, it said.
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