NMDC sales, production down in fiscal 2015-16

A weak market sentiment coupled with subdued demand led to decline in sales and production of the country’s biggest iron ore miner NMDC in 2015-16.

The public sector undertaking reported sales of 28.87 million tonnes (MT) in 2015-16, down from the 30 MT it clocked in 2014-15.

It had reported sales of 30.87 MT in 2013-14 fiscal and 26.48 MT in 2012-13.
As for production, the ‘Navratna’ company reported an output of 28.32 MT last fiscal, down from record production of 30.44 MT in 2014-15.

In 2013-14, it had clocked an output of 30.02 MT, while in 2012-13 it was 27.18 MT.
Iron ore is the main ingredient used in making steel.

Analysts have attributed the decline in sales to the subdued demand for iron ore by steel makers. They said that in India, as well as globally, the ore market has been hit by over production, while on the other hand, steel demand has been softening.

However, they were of the view that iron ore market in the country will revive marginally in the short and medium term on the back of several infrastructure development projects launched by the government such as smart cities and housing for all.

A senior official from a mining company said sluggishness in iron ore prices is expected to remain for the next two years internationally.

However, after the measures such as minimum import price, safeguard duty and anti-dumping duty on steel products by the government, iron ore offtake by domestic producers is expected to increase a bit.