UPDATE:India NMDC To Decide FY10 Local Iron Ore Prices In 1 Mo
June 23 2009 - 6:05AM
Dow Jones News
State-run NMDC Ltd. (526371.BY) will announce iron ore prices
for domestic steel companies for this fiscal within a month, a
senior executive told Dow Jones Newswires Tuesday.
"I will be going to Japan in the second week of July to conclude
iron ore sales contracts with Japanese steel mills. Once that
happens, the Indian prices would be announced too," said Rana Som,
chairman of India's largest iron ore producer.
India's current financial year began April 1.
NMDC exports 13% of its iron ore supplies and sells the rest to
domestic steel companies.
Som said NMDC's prices would be in the same range as Rio Tinto
(RIO.LN), which has sharply cut its prices.
Rio Tinto has, on an average, cut its iron ore fines prices by
33% versus last year, while the price of lumps have been cut by
44%.
Iron ore prices are falling as a result of a decline in steel
demand due to the global economic slowdown.
On the Rio Tinto-BHP Billiton (BHP) alliance, Som said the deal
would reduce the space for a partnership with Rio Tinto.
"The Rio-BHP deal is limited to Australian mines and to that
extent, the relationship NMDC has with Rio Tinto has been
squeezed."
However, he added Rio Tinto and NMDC will continue to jointly
seek mining properties globally as agreed to last year.
-By Prasenjit Bhattacharya, Dow Jones Newswires;
91-11-4356-3358; prasenjit.bhattacharya@dowjones.com