- 03 Oct 2024
- ICICI Securities
NMDC HIKES IRON ORE PRICES AND REPORTED STEADY VOLUME PRINTS FOR SEP’24
News: NMDC has informed the exchanges that it has increased the Iron Ore Lump and Fine prices by ₹400 per tonne to ₹5,750 and ₹5,010 per tonne, respectively. It reported steady volume prints for September 2024. Production volume flat YoY at 3 million tons (MT) with cumulative production in FY25 on YTD basis reaching to 17.5 MT (down 11% YoY). Moreover, sales volume stood at 3.54 MT (up by 14% YoY) and 19.8 MT (down by 4% YoY), respectively.
Views: The recent price hikes closely align with the international price, which has risen by more than 20% to ~$110 per tonne from the low of ~$90 per tonne. Additionally, the healthy growth in sales volume for the month indicating recovery in domestic demand. We maintain a positive outlook on NMDC as the price hike signaling favorable demand prospects ahead, which are expected to drive robust volume growth and profitability going forward.
Impact: Positive