The state-owned miner lowered the price of the high-grade lump ore by about 7 percent this month, Finance Director Swaminathan Thiagarajan said today in a text message. Low-grade fines were unchanged from last month, he said.
The company, the worst performer on the S&P BSE Metal Index (BSEMETL) today, fell as much as 2.4 percent to 133.05 rupees and traded 2 percent lower as of 12:19 p.m. in Mumbai. The Metal Index climbed 0.2 percent.
NMDC, based in the southern city of Hyderabad, has cut prices by more than 15 percent since January as domestic demand fell, tracking a global trend. Benchmark prices in China dropped 9 percent last month, according to The Steel Index.
Ore prices may fall to $100 a ton in the third and fourth quarters next year compared with $127 a ton in the second quarter of 2013, James Glenn and Rob Brooker, analysts at National Australia Bank Ltd. said in a report today. New mine supplies and slowing demand may push the price down below $100 a ton, Bloomberg Industries analysts Kenneth Hoffman and Andrew Cosgrove wrote on March 28.
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