India's largest iron ore producer, state-controlled NMDC, has reduced its prices on weaker sales resulting from lacklustre steel consumption.
The producer has decreased its domestic prices by 500 rupees/t ($6/t) to Rs3,900/t for lump with 65.5pc Fe content, and to Rs2,810/t for 10mm fines with 64pc Fe. Lump and fines prices are now lower by 48pc and 56pc, respectively, from the previous year.
NMDC registered its lowest sales in 22 months in June, as an export duty on steel exports weighed on demand.
Sales in June declined by 40pc on the year and by 28pc on the month to 1.9mn t. Output was at 2.57mn t, the lowest since October 2020, 14pc lower than June 2021 and 20pc lower on the month.
Domestic steel prices have extended their decline and stood at Rs59,500/t ex-Mumbai on 8 July, down by 6pc on the month.
The daily Argus ICX 62pc iron ore index was at $114.15/dry metric tonne on 8 July, lower by 47pc on the year.
