Seshagiri Rao, JMD and group CFO, JSW Steel, said that the price hike could be a result of the rupee's depreciation. He added that considering the quality of the iron ore in Karnataka, the prices should be competitive.
Basant Poddar, former chairman and member of the Federation of Indian Mineral Industries (FIMI) -- South, said that the price revision is a welcome move to spur local consumption and revenue to the state of Karnataka.
In January, NMDC was quoting Rs 3,100 for lump ore and Rs 2,760 for iron ore fines. Subsequently, the prices dropped to Rs 2,900 and Rs 2,560, respectively, in April. The company has increased the prices gradually in the following months.
Up to July 2018, NMDC's total production was 8.39 million tonnes (MT) as against sales of 8.72 MT. While Chattisgarh sales stood at 7.08 MT as against production of 5.50 MT, Karnataka sales were 1.64 MT as against production of 2.89 MT.