NMDC surges on iron ore price hike
NMDC, a government owned company has raised the prices of iron ore by Rs. 150 per tonne to Rs. 3,200 per tonne and fine prices to Rs. 2,810 per tonne.
The raw material prices of steel increased due to supply shortage in the global markets. The international prices of Iron ore are expected to remain range bound in FY19. The raw material including iron ore and coking coal from China and Australia are averaged out to US$65 per tonne & coking coal at US$170 per tonne.
However, the domestic prices of Iron defy the price trend in the international iron ore & coking coal prices. The average domestic iron ore prices have surged 41.1 per cent yoy to Rs. 3,328 per tonne during April 2017 to Feb 2018, while international prices edged up only by 1.7 per cent in the same period to US$69 per tonne.
The robust infrastructure growth led to strong demand for steel in the country. This led to sustained demand for raw material prices. The stock is up by 1.76 per cent at Rs.103.8 per share.