NMDC has increased iron ore prices by up to 40 per cent. The new ore prices would be effective from October this year. The move of NMDC would affect the steel companies such as Essar, JSW, Ispat and RINL.

However, SAIL and TATA steel would not largely be impacted by the decision of country’s largest iron ore company as these companies maintain their own mines. The steel industry has criticized the decision of NMDC. There is already a slump in the steel industry as the world is facing a stiff global financial crisis.

RINL Executive Dierctor (Commercial) C G Patil has condemned the recent hike. He said that the input prices have been increased and there is a slowdown in the steel industry. This would affect the profit margins of steel companies.

Chairman and Managing Director of NMDC, Rana Som justified the hike and said that the hike for fresh billing would be applicable from October 22. The prices for long term contracts are increased by 33 percent while calibrated lump ore and DRCLO (direct reduced calibrated lump ore) prices are increased by 36 and 40 percent respectively.