NMDC Ltd. said its volumes in the ongoing quarter are likely to be muted mainly because of a planned shutdown of a blast furnace at Jindal Steel and Power Ltd., India’s fourth-largest steelmaker that sources raw material from the state-run miner.
“Don’t expect the first quarter [of 2018-19] to be better than the fourth quarter in terms of volume due to the planned maintenance shutdown at JSPL,” TK Rao, director at India’s largest iron-ore miner, told Bloomberg Quint over the phone. Volume growth usually picks up from the second half of the financial year, he said.
The miner increased prices of iron ore and Rao said it will focus on protecting its volumes. NMDC expects 7-8 percent volume growth at 38-39 million tonnes in the ongoing financial year, he said.
Price Hike After Three Months
NMDC increased prices after three months to bring domestic pricing in line with landed cost of imports. The miner increased prices of lumps by Rs 150 to Rs 3,050 a tonne, and that of fines by Rs 100 to Rs 2,660 a tonne.
Despite the hike, prices will remain competitive compared to private miners, according to Rao. NMDC offers a discount of between 25 and 30 percent in the eastern region.