NMDC price hike gets Paswan146;s support

8220;I am not saying that NMDC should increase prices, but how can I say that it should not do so especially in view of the fact that the PSU cannot remain oblivious to market forces and is open to do what is best in its interests. As of now we have no plans to intervene on this issue,8221; steel minister Ram Vilas Paswan told The Indian Express.

This assertion is likely to cause anxiety among domestic steel makers especially those who do not have captive mines and are squarely dependent on the mining giant for sourcing iron ore for firing their blast furnaces. NMDC has told the Steel Ministry that it intends to review the prices of ore for its domestic consumers with effect from April this year instead of November last year.

The PSU is trying to re-negotiate Long Term Agreement LTA prices with Japanese Steel Mills JSM and Posco arguing that its costs have escalated following imposition of export duty and hike in railway freight.

Ahead of an Indian delegation8217;s visit to Japan and Korea to settle long-term contract prices with the steel mills there, NMDC has informed steel ministry, seeking nearly 80 per cent increase in prices of iron ore fines and over 96 per cent on lumps from the international clients.

This is pertinent for the local steel utilities, as domestic iron ore prices are determined on the basis of percentage increase accepted by Japanese steel mills for NMDC8217;s products duly adjusted to rupee-dollar parity.

Today the PSU formally entered into a MoU with global mining giant Rio Tinto for jointly scouting and exploring iron ore properties within India and abroad. Both the companies have decided to form a Joint Working Group and formally put in place a JV company soon wherein both the companies would have 50:50 equity, NMDC CMD Rana Som said.