NMDC, the country’s largest iron ore miner, has hiked the rates of the mineral by Rs 300 to Rs 2,950 a tonne with immediate effect.
Iron ore is the key raw material used in steel making and, therefore, any revision in its prices has a direct impact on the prices of steel.
In a regulatory filing with the stock exchanges, NMDC said it has increased the price of lumps, or high-grade iron ore, by Rs 300 to Rs 2,950 per tonne, and that of iron ore fines, or inferior grade ore, by Rs 300 to Rs 2,660 a tonne.
The revised prices exclude royalty, District Mineral Fund (DMF), National Mineral Exploration Trust (DMET), cess, forest permit fee and other taxes, the company added.
It disclosed that the new rates are effective from August 12.
The last revision, effective July 31, was announced on August 3, when NMDC had fixed the price of lumps at Rs 2,650 per tonne and of fines at Rs 2,360 a tonne.
NMDC is also involved in the exploration of a wide range of minerals such as copper, rock phosphate, lime stone, dolomite and gypsum.
On the BSE, its shares ended at Rs 94.35, a gain of 1.18 per cent over the last close.
In a recent note, analysts at Motilal Oswal said that the price hikes by the company have been ahead of their estimates and this has been on the back of improving volumes.