NMDC to double iron ore export prices_Iron Ore

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NMDC to double iron ore export prices

作者：25 发布时间：2010-05-27 文字大小：【大】【中】【小】

NMDC Ltd, India's biggest iron ore miner, aims to double the price for new export contracts from Nippon SteelCorp and POSCO, the Press Trust of India said in the Mint newspaper.

"We expect to clinch a 90-100% hike in prices to supply our iron ore to them over the last contracted rates," the news agency quoted NMDC Chairman Rana Som as saying.

State-run NMDC exports a small portion of its total production of about 30 million tonnes of iron ore annually.

Earlier in March, Som had said in an exclusive interview with CNBC-TV18, that he expected the minimum price increase should be 40-45% in the overseas sector, last year the price decrease for lumps was 44% and for fines was 33%.

He had also added that NMDC was likely to go back to the pre-2009-10 period when the prices were increased by about 96% for the first time.

Further he had pointed out that as all their contracts are expiring this year, they were working on deciding price fixation formula, which was expected to give a better realisation.

He explained that they were trying to have a composite weightage factors which will take into account not only the long-term pricebenchmark which is there between Japanese steel mills and Australiansteel mills, but also take into account such other factors as are important in the domestic sector.

Sourced from www.moneycontrol.com