Shares of state-run NMDC declined on Friday, January 9, after the miner announced a sharp cut in iron ore prices, effective immediately. The price reduction triggered investor concerns over near-term revenue realisations, even as global iron ore prices remain firm.
In an exchange filing, NMDC said it has reduced the price of Baila Lump (65.5%, 10–40 mm) to Rs 4,600 per tonne, down from Rs 5,600 per tonne in the previous month. This marks a steep cut of Rs 1,000 per tonne. At the same time, the price of Baila Fines (64%, -10 mm) has been revised to Rs 3,900 per tonne, compared with Rs 4,750 per tonne earlier, implying a reduction of Rs 850 per tonne. The company clarified that these prices are exclusive of royalty, cess, GST, and other applicable levies.
The sharp revision came as a surprise to the market, especially against the backdrop of relatively strong global iron ore prices. Iron ore futures in Singapore are currently trading near the $109 per tonne mark, the highest level since February last year, supported by expectations of macroeconomic stimulus in China and restocking ahead of the Lunar New Year. The People’s Bank of China has also indicated that it will deploy multiple tools in a flexible manner to support economic growth.
Despite the global strength, investors reacted negatively to NMDC’s domestic price cut, fearing potential pressure on realisations and profitability in the near term. The stock slipped to the day’s low and was trading around 2% lower at Rs 80.06, retreating from levels close to its 52-week high of Rs 86.72.
Market participants are now watching whether the price reduction is a one-off adjustment or the start of a broader pricing reset, particularly as iron ore ended 2025 with only modest gains amid rising supply from major global miners.