NMDC shares decline over 3% after company reduces iron ore prices

NMDC announced a ₹500 per tonne reduction in the prices of lump ore and fines, effective June 30, 2024.

The company reduced the prices of lump ore to ₹ 5,950 per tonne from ₹6,450 per tonne for the month of June. In a filing to the stock exchanges, the company announced a cut in the price of fines to ₹5,110 per tonne from ₹5,610 per tonne in the previous month.

The previous month, the company raised the prices of lump ore by ₹250 a tonne and fines by ₹350 a tonne.

NMDC also reported a fall in its iron ore production to 3.37 million tonnes in June 2024 compared to 3.48 million tonnes (MT) in the same month a year ago.

Its iron ore sales declined to 3.73 million tonnes in June 2024 compared to 4.10 million tonnes in June 2023.

Last month, the country's leading iron ore miner reported a 37% decline in iron production to 2.34 million tonnes in May 2024. Its monthly sales also fell by 22% to 2.82 million tonnes in May compared to the year-ago period.

NMDC’s cumulative iron ore production dropped to 9.19 million tonnes in April-June 2024 compared to 10.7 million tonnes in April-June 2023. Iron ore sales declined to 10.07 million tonnes in April-June 2024 compared to 11.15 million tonnes in the year-ago period.

NMDC shares declined by 3.64% to hit a low of ₹242.42 apiece on the NSE after weak production data and the price cut. More than 1.66 crore shares of the company changed hands on the bourse.

Shares of NMDC Ltd were trading 2.94% lower at ₹244.21 apiece on the NSE at 2:00 pm.