Indian state-controlled mining company NMDC raised its iron ore prices in February in response to sustained strength in the domestic steel market.
NMDC, India's biggest merchant iron ore miner, set the price for 10-40mm 65.5pc lump ore at 4,700 rupees/t ($52/t), Rs100/t higher than the January price. The producer also raised the price of 64pc fines by Rs100/t to Rs4,000/t.
The prices, which are effective from 10 February, are on a free-on-rail basis, and exclude royalty, goods and services tax (GST), cess, forest permit fee and other taxes.
NMDC changed its pricing structure from January. The mining company's iron ore prices included royalty and some mineral taxes and excluded forest permit fee, cess, GST and other taxes until the end of 2025. But from January, it reverted to the pricing structure it had before 2023, an executive at the mining firm said.
The rise in NMDC's February iron ore prices is in line with a strong domestic steel market. Major Indian mills have raised hot-rolled coil (HRC) prices by Rs2,500/t or more on the month at the start of February. HRC prices have been rising from mid-December on extended safeguard duties, elevated coking coal costs and robust exports.
The Argus weekly Indian domestic HRC assessment for 2.5-4mm material stood at a near two-year high of Rs53,650/t ex-Mumbai, excluding goods and services tax (GST), on 6 February, up by 16pc compared with mid-December.
NMDC's iron ore output rose by 9pc on the year to 5.56mn t in January, and sales were 7pc higher at 4.79mn t, according to provisional data from the company.
Iron ore production rose by 11pc on the year to 42.5mn t in April 2025-January 2026 — the first 10 months of the fiscal year ending 31 March 2026. Sales stood at 39.7mn t in the same period, rising by 10pc on the year.
