State-run NMDC Ltd, India's largest iron ore producer, expects spot prices to stablise at $75-$80 per tonne on a free-on-board basis in the near-term on renewed Chinese demand, Chairman Rana Som said.
"This price trend should continue due to project growth in the Chinese steel industry," Som told reporters on Monday, on the sidelines of an event, where the company signed a memorandum of understanding for developing a limestone mine with state-run Steel Authority of India (SAIL.BO). Iron-ore prices rose above $100 a tonne with freight this month for the first time since mid-August, though prices have remained weak for the most part of this calendar year.
Som said the prices have stabilised for now.
China, the world's largest steel maker, is expecting production to remain robust, which has improved the prospects for iron ore, the main ingredient in steel making.
NMDC sells most of its about 30 million tonne output to domestic steelmakers. Som said in the 2010/11 fiscal year, iron-ore prices may firm up from the current levels on the back of Chinese demand.
"Apart from China, Japan is also on the path of recovery, though Europe is not showing distinct signs of recovery," Som said. NMDC had asked the federal railways for some additional wagons to help transport iron-ore supplies to steel plants following damages to a 274 km-long pipeline in Chattisgarh state in central India in June.
Source: Reuters
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