"Domestic iron ore prices vary across states and across different grades of the ore. Prices charged by the National Mineral Development Corporation (NMDC), the largest iron ore miner in the country, can, however, provide some indication on price movements in the market.
NMDC, which undertakes monthly price revisions, decided to keep the prices of iron ore lumps and fines unchanged at ₹4,600 per tonne and ₹3,160 per tonne, respectively, in September, for the third month in a row. Going forward too, the state-owned miner expects prices to remain stable.
With iron ore supplies unlikely to be fully ramped up to the level of domestic demand, prices are unlikely to trend downwards anytime soon.
Even as iron ore production picks up, the expected growth in Indian steel consumption can, alongside, increase the demand for iron ore, a key steelmaking input.
The government’s thrust on infrastructure investment and the recent uptick in the automobile sector, both of which are key user industries, should help boost domestic steel demand, which grew only 0.3 per cent during April-June 2014."
DYOR
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