NMDC expects 40% rate hike in iron ore supplied to Japanese mills

Under the long-term arrangements with Japanese mills, NMDC expects prices of iron ore lumps and fines to settle at the $110 per-tonne level and around $85 a tonne, respectively

India's largest iron ore miner National Minerals Development Corp Ltd (NMDC) on Monday said it expects a 40% hike in the prices of iron ore supplied to Japanese steel mills under a long-term pact in the next fiscal ahead of preliminary talks with the foreign manufacturers scheduled for Wednesday.

"I am expecting a 40% hike in the rates of iron ore we supply to Japanese steel firms under the long-term contract for 2010-11. Preliminary discussions with them will start day after tomorrow," NMDC's chairman and managing director Rana Som told reporters.

Under the long-term arrangements with Japanese mills, Mr Som said that he expects prices of iron ore lumps and fines to settle at the $110 per-tonne level and around $85 a tonne, respectively.

At present, state-run NMDC supplies iron ore lumps to Japanese mills at around $71 a tonne and iron fines at $61 a tonne.

Iron ore prices had almost halved during the global economic slowdown.

On response of investors to its recently concluded follow-on public offering (FPO) he said, "It is very good. Selling about 33 crore shares in three days is overambitious. Retail investors bought equity worth around Rs800 crore."

When asked if public sector institutions like Life Insurance Corporation (LIC) have bailed out the NMDC FPO, he said, "It is a wrong perception. LIC is an institution which participates in both public and private sector offerings. It is wrong to say it has bailed out NMDC."
 

  • Like this story? Get our top stories by email.

    User 

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    28 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 4 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)