NMDC Slashes Iron Ore Prices Amid Weak Steel Demand

The state-owned mining giant NMDC has slashed prices of iron ore lump by Rs 600 or USD 7.2 per tonne and fines by Rs 500 or USD 6.0 per tonne effective 1 July 2025. The new prices have fallen to Rs 5,700 per tonne for lumps and Rs 4,850 per tonne for fines, down from Rs 6,300 and Rs 5,350, respectively in early June.

This reduction is a clear reaction to weak domestic steel demand and unsuccessful auction results. In a June 12 auction in Chhattisgarh, over 95% of 111,500 tonnes on offer went unsold, indicating practically no market activity. This decision further followed a near 5% drop in the domestic rebar index and about 1% drop in hot-rolled coil prices throughout June, all occurring despite the implementation of safeguard duties to attempt to stabilize the domestic market.

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For India's iron ore and steel ecosystem this is likely a significant inflection point. The price cuts provide short-term cost relief for steelmakers and signal challenges for the entire demand side and price pressure in the market. The market's response was immediate, as NMDC's stocks fell over 3% following the announcement, demonstrating investor concerns around earnings and sectoral outlook.

The development highlights the urgency for demand recovery in core industries to stabilize pricing and sustain momentum in the mining and steel value chain.