NMDC, India's largest iron ore producer, saw its iron ore sales dip by nearly 35% to 1.2 million tonnes in December as demand declined from domestic steel consumers like Essar, Ispat and JSW. This compares to average monthly sales of around 2 million tonnes. Sales volume in October and November also dipped by 35% and 65% respectively.
Mr S Venkatesan director commercial of NMDC said that despite the global economic slowdown that has led to a slump in demand for iron ore the company would be able to achieve about 80% of its annual sales target.
Annually, the Indian miner produces about 30 million tonne of iron ore, of which 3.5 million tonnes are exported to Japanese and South Korean steel mills including POSCO. With its offtake declining over the months, NMDC had reduced its long-term contract prices for domestic supply of iron ore by 25% from December 1st.
Source: Steel Guru
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