NMDC expects average iron ore price to be around Rs 4,000/tn
NMDC expects the average price of iron ore in the current fiscal to be around Rs 4,000 per tonne, a little lower than last fiscal's Rs 4,019 a tonne.
New Delhi: State-run NMDC expects the average price of iron ore in the current fiscal to be around Rs 4,000 per tonne, a little lower than last fiscal's Rs 4,019 a tonne.
"I think the average price of iron ore for the current fiscal will hover around Rs 4,000 per tonne," NMDC's Finance Director S Thiagarajan told PTI.
Average price of Rs 4,000 is at least three-year low for the company as it had sold its iron ore at Rs 4,090 per tonne in 2011-12. The 2012-13 price was two percent lower than that of 2010-11.
During the January-March quarter of the 2012-13 fiscal, the average price of NMDC's iron ore was Rs 3,660 per tonne compared to Rs 3,966 crore in the year ago period.
Volatility in global prices is the reason for the declining trend in the average prices of iron ore, the raw material for steel making.
The subdued average prices of iron ore impacted the net profit of NMDC by 10.79 percent at Rs 1,464.95 crore for the fourth quarter ended March 31, although production and sales improved significantly.
NMDC, the country biggest iron ore producer, targets to produce 27.4 million tonnes of iron ore during the current fiscal.
Meanwhile, NMDC did not hike the price of its products, both fines and lumps, in June and kept it at the May's price of Rs 2,610 a tonne for fines and Rs 4,600 a tonne for lumps.
Thiagarajan, however, said that there is no dearth of demand for the raw material in the country as steel firms are agrresively adding capacities.