The largest iron ore producer of the country, National Mineral Development Corporation (NMDC) is all set to slash the prices of iron ore by 40 percent. The step is aimed to increase the demand of iron ore for the manufacture and automobile sector. The board of NMDC would meet on December 4-5 to discuss the impact of the global slowdown on steel makers and iron industry.

The managing director of NMDC, Rana Som said that the company would access the entire scenario in the forthcoming meeting. Ore sector is facing acute shortage in demand following the global slowdown and company would do its best to remove demand supply mismatch.

Meanwhile, iron prices are continuously declining in the international market. Price of iron have declined by over 50% in the last three months while iron ore prices are considerably high in the domestic market, causing huge loses to the Indian consumers. Ore prices may fall by Rs1000-2,000 per ton after price revision. NMDC sells calibrated iron ore between Rs 4,000-5,500 per tonne and fines at around Rs 3,000 per tonne in India. Steel making companies such as Ispat Industries, Essar Steel, JSW Steel and Rastriya Ispat Nigam Ltd (RINL) had been demanding the slash in iron ore prices in line with the international prices of ore for a long time.