The largest iron ore producer in India, NMDC, has increased iron ore pricing for the second consecutive month, January.
The producer under state supervision raised domestic pricing by 200 rupees/t ($2/t) in November to Rs4,300/t for lump containing 65.5pc Fe and by Rs500/t to Rs3,410/t for 10mm fines containing 64pc Fe. Lump and penalty prices have decreased by 12 and 16 percent, respectively, compared to the previous year.
Domestic steel demand is projected to increase in the first quarter of 2023, as consumption normally increases before the conclusion of the fiscal year. Exports are also likely to increase as overseas markets recover and Indian mills increase shipments in the absence of export duties.
On November 19, the Indian government eliminated export taxes on steel goods and iron ore. The taxes were levied in May.
Sales slump in December 2022
In December, the state-controlled producer’s iron ore sales decreased by 2.4pc year-over-year to 3.32mn t but increased by 9.2pc month-over-month, while its output decreased by 8.6pc year-over-year but remained stable at 3.61mn t.
On November 19, India eliminated export levies on steel products and iron ore, but cheaper imports and a lacklustre worldwide market restrained demand.
During the period of April to December, the producer’s sales decreased by 9 percent, to 25.8 million tonnes, while production decreased by 4.9 percent, to 26.93 million tonnes. The company intends to produce 46-47 million metric tonnes of iron ore during the April 2022-March 2023 fiscal year, up from 42 million metric tonnes in 2021-22.
