Indian mining company National Mineral Development Corporation (NMDC) has hiked iron ore prices for lumps by Rs500/mt ($7/mt) and fines by Rs250/mt ($3/mt) for April deliveries.
The move comes following a Rs 1,300/mt hike in the floor price of iron ore from their mines in the e-auction conducted by the Odisha Mining Corporation (OMC) held on March 31.
Industry leaders said that hike in iron ore prices is also attributed to increase in royalty by 22-23pc by the Central Government in recent amendment to the MMDR Bill 2021.
NMDC’s iron ore lumps are priced at Rs5,850/mt ($80/mt) and fines at Rs4,560/mt ($62/mt), effective from April 3, according to a company release.
The company had previously increased iron ore prices for lumps by Rs250/mt ($3/mt) and fines by Rs100/mt ($1/mt) on March 21.
International iron ore prices shot from $80/mt in April 2020 to around $175/mt in mid-Feb this year, but it has undergone correction since then, and are now around $167/mt.
Pellet Sponge prices in India have also reached an all-time high of Rs30,000/mt ($409/mt) ex-works Raipur, up by Rs2,500/mt in March 2021.