<article><p class="lead">Sales from India's largest iron ore producer, state-controlled NMDC,dropped in June to its lowest since August 2020, as an export duty hike weighed on steel demand and prices.</p><p>Sales in June declined by 40pc on the year and by 28pc on the month to 1.90mn t.</p><p>NMDC's June output was 2.57mn t, its lowest since October 2020 and 14pc lower than the previous year and 20pc lower on the month.</p><p>The multi-month drop in sales and output is on the back of a <a href="https://direct.argusmedia.com/newsandanalysis/article/2334201">15pc export duty imposed by the Indian government on several steel products</a> in May, which has upended demand and dragged steel prices down.</p><p>Domestic steel mills are also expected to cut production in July on poor domestic demand and limited exports. JSW Steel's JSW Ispat Special Products Limited <a href="https://direct.argusmedia.com/newsandanalysis/article/2343651">brought forward the planned shutdown of its blast furnace</a> at Raigarh in Chhattisgarh last month.</p><p>The producer had <a href="https://direct.argusmedia.com/newsandanalysis/article/2338333">sharply reduced iron ore prices in June</a> by 1,100 rupees/t ($14/t) to Rs4,400/t for lump with 65.5pc Fe content and to Rs3,310/t for 10mm fines with 64pc Fe.</p><p>NMDC <a href="https://direct.argusmedia.com/newsandanalysis/article/2337626">aims to produce 46mn-47mn t in the current 2022-23 fiscal year ending 31 March</a>, compared to 42mn t in the last fiscal year.</p><p>The daily <i>Argus</i> ICX 62pc iron ore index was at $115.45/dry metric tonne on 1 July, lower by 48pc from a year earlier and by 15pc on the month.</p><p>By Sumita Layek</p></article>
