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NMDC Posts June Sales of 3.58 Million Tonnes Amid Iron Ore Price Cuts and Market Headwinds


Updated: July 01, 2025 19:15

Image Source: NMDC
NMDC Limited, India’s largest iron ore producer, reported sales of 3.58 million tonnes (MT) in June 2025, closely matching its production for the month. While this figure reflects the company’s operational resilience, it also marks a 4.3% decline from June 2024, highlighting the impact of softer market conditions and recent price adjustments.
 
Key Highlights:
 
June Performance: NMDC’s iron ore production and sales for June 2025 stood at 3.57 MT each, representing a 5.9% year-on-year increase in production but a 4.3% dip in sales compared to the previous year. This signals robust output but a slight softening in offtake.
 
Price Reductions: Effective July 1, NMDC slashed iron ore prices by over 9%, with Baila Lump ore now priced at ₹5,700 per tonne and Baila Fines at ₹4,850 per tonne. This downward revision follows an 11% cumulative drop over the past two months, reflecting global oversupply concerns and subdued demand.
 
Regional Trends: In May 2025, NMDC saw strong growth in both Chhattisgarh and Karnataka, but June’s figures suggest a moderation in sales momentum as the market adjusts to new pricing and supply dynamics.
 
Market Outlook: Brokerages remain cautious, with expectations of continued pressure on iron ore prices due to upcoming large-scale projects like Simandou in Guinea, which could further increase global supply.
 
Financial Impact: The ongoing price cuts are expected to weigh on NMDC’s revenue and profitability in the coming quarters, despite the company’s efforts to maintain production growth.
 
Sources: Smartkarma, NDTV Profit, CNBC-TV18

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