Steel prices show signs of declining; NMDC revises iron ore prices

Steel prices in India have declined from the historical highs of July 2021 despite the slight rise in global steel prices. In July 2021, till 30 July, steel prices fell by approximately 3.5 per cent month-on-month. Steel prices were below  3 per cent off its peak value.

Last week, India’s top steelmakers announced a price cut, after almost a year of back-to-back price hikes. Benchmark hot-rolled coil (HRC) prices were down by around ₹1,500 to Rs 2,000 a tonne for July.

However, Indian hot rolled coil (HRC) trading prices rose by Rs 1,400 per tonne to Rs 65,000-66,000 a tonne in Mumbai in the week ending 30 July, as consumers resumed buying in anticipation of price hikes in August 2021. Domestic HRC prices are still ruling high at around Rs 68,500 a tonne as against Rs 70,000 – Rs 69,000 a tonne.

Meanwhile India’s state-owned miner, NMDC has revised its iron ore prices with effect from 6 July, 2021.  The company has a fixed lump ore (65.53, 6-40mm) price at Rs7,150 per tonne. The price for ore fines (643, -10mm) has been revised to Rs 6,160 per tonne. The above FOR prices are excluding Royalty, DMF, NMET, Cess, Forest Permit Fee and other taxes. Ore production in Odisha has also gone up and there is also a substantial uptick in the demand from the steel mills, as most steel plants have ramped up their capacity utlisation levels between 80 per cent and  90 per cent.

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