News and Events

Economic Times reported that amidst concerns raised by the domestic steel makers against increase in iron ore prices by it when global prices were falling, India's largest iron ore producer NMDC is appointing a global consultant to help arrive at more stable pricing formula.

 

 According to Mr CS Verma to CMD of NMDC the company has a pricing formula, wherein the prices of iron ore in the previous quarter determined the pricing of iron ore in the next quarter for long-term supplies.

 

 Whenever there is a trend of rise in iron ore prices, the steel companies raise concerns though no one comes to the rescue of NMDC when ore prices begin to go down, Mr Verma told shareholders at NMDC's 54 annual general meeting in Hyderabad on Thursday.

 

 He said that "We are going to seek the services of a world class consultant to guide us on iron ore pricing mechanism without further elaborating. He hoped that the iron ore could see a transparent pricing mechanism through development commodity stock exchanges going forward.”

 

 A senior NMDC official told ET that "We never had any fixed formula. Sometimes we followed international pricing and sometimes domestic demand, both of which were not welcomed by the domestic steel makers. We now want to arrive at more stable and long-standing pricing formula without any major volatility."

 

 NMDC has already floated a global tender, seeking expression of interest from consultants to offer their services on pricing mechanism. The official further said that "We have received several applications and evaluation of them is currently being taken up. We hope to finalize a consultant in a month or so and begin to adopt the new pricing mechanism from fourth quarter of the fiscal.”