NMDC ore export price less than local rate: Steel cos

 Steel majors have accused the country’s biggest iron ore producer NMDC of charging higher prices for ore while exporting at a lower rate and said the “anomaly in pricing mechanism” of the state-run company would lead to higher steel imports.

Steel producers said ore prices have come down globally to $133 at present from $177 a tonne in June last year but NMDC is hiking domestic prices due to anomaly in its pricing mechanism, a charge denied by the company.

“Internationally there is a downward trend in ore prices but it is an irony that NMDC is increasing it. Our delegation has met Steel Secretary D R S Chaudhary and other officials as this may spell doom for steel makers while increasing steel imports,” Sponge Iron Manufacturers Association (SIMA) Executive Director Deependra Kashiva said.

“The shortage of iron ore in India due to ban on iron ore mining in Karnataka and closure of certain mines and curtailment of production in some mines in Orissa and Jharkhand is being used as an opportunity by iron ore producers to hike prices to steel manufacturers without considering the global trends, “ JSW Steel Joint Managing Director and Group CFO Seshagiri Rao said, adding that it is unfortunate that certain domestic steel producers are forced to import iron ore using foreign exchangein spite of having abundant iron ore reserves in the country.

Essar Steel Managing Director and CEO Dilip Oommen said, “Prices of iron ore have already softened internationally by $20 a tonne from April to now. In India, as well, the prices inevitably come down.”

Industry players will take up their cause with the Steel Ministry again as they feel NMDC is “profiteering” at the cost of indigenous industry.