Higher prices, volumes key positives for iron ore miner NMDC stock

The company is likely to push iron ore capacity up, from the current rated 50 MTPA to 70 MTPA, which would leave it well-placed to meet demand in the next up cycle

Devangshu Datta

Iron ore major National Mineral Development Corporation (NMDC) looks like an interesting prospect. The public sector undertaking (PSU) has spun off its steel plant as a listed concern, NMDC Steel. It has hiked ore prices four times since November 2022, after removal of export duty, in response to strong trends. Overall, this is a 42 per cent hike in ore prices (averaged across fines and lumps) since November 2022, suggesting margin expansion and earnings upgrades in the fourth quarter of the 2022-23 (Q4FY23).
The hikes have been prompted by stronger seaborne ore prices and removal of export duty. China reopening and cutting its own carbon-intensive steel production has created export demand. NMDC’s prices are still at a considerable discount (30 per cent) to imports so there’s a margin of safety for the domestic business.
Volumes, though, are down and the share price hasn’t responded. In the 11-month period of FY23, sales volu

Also Read

NMDC: A long-term play on steel cycle; may see decline in FY23 revenues

NMDC in talks to invest in lithium exploration companies in Australia

Metal stocks: Will export duty rollback help?

NMDC institutes in Chhattisgarh's Dantewada district send youths to MNCs

Iron ore, coal transport push Sept Railway freight up 9.7% to 116 mn tonnes

Multiple triggers likely to help Zydus to continue with its outperformance

India's e-comm mkt to grow from $83 bn in 2022 to $185 bn in 2026: Report

Long-term prospects to strengthen investment in life insurance stocks

ADP merger likely to give wings to GMR Airports Infrastructure stock

Metal stocks: A buying opportunity for traders or a deeper fall?


  • 1D
  • 5D
  • 1M
  • 3M
  • 6M
  • 5Y
  • MAX

First Published: Mar 24 2023 | 9:28 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to