NMDC shares fall after iron ore price cut—Here’s Morgan Stanley’s take
Published on 23/10/2025 03:25 PM
NMDC Share Price: National Mineral Development Corporation (NMDC) share prices slipped on Thursday's trading session, a day after the company cut prices for its iron ore lumps and fines.
At 3 pm, the stock of the mineral development corporation was trading at Rs 74.28 apiece, down by 1.79 per cent.
The PSU has reduced iron ore prices, with the new rates effective from October 22. The price of Baila Lump has been cut down to Rs 5,550 per tonne, while the price of Baila Fines has been reduced to Rs 4,750 per tonne.
Baila Lump is an ore containing 65.5 per cent of the iron content, while Baila Fines contains 64 per cent of the iron content.
The above free on rail (FOR) prices are inclusive of Royalty, DMF, NMET and exclusive of Cess, Forest Permit Fee, Transit fee, GST, Environmental Cess and Other Taxes, the company said in its exchange filing.
Morgan Stanley noted that NMDC has reduced iron ore lump prices by 9 per cent and fines prices by 10 per cent. The brokerage highlighted that the discount of domestic iron ore fines to import parity prices has widened to 57 per cent from 53 per cent.
Morgan Stanley said this move came as a surprise, as the brokerage had expected domestic iron ore prices to remain stable or rise somewhat in the near term.
The company's total iron ore production in September was 3.75 million tonnes (MT), indicating a 23.35 per cent increase compared to the previous year, as the production in September of FY25 was only 3.04 MT.
In September of the fiscal year 2026, the iron ore production in NMDC's Chhattisgarh mines grew by 31.75 per cent year-on-year (YoY) to 2.49 MT, in contrast to 1.89 MT in September FY25.
However, production in Karnataka increased by a slower rate of 9.56 per cent to 1.26 MT, up from 1.15 MT.
The company's total sales for the month experienced a significant increase of 9.6% YoY, reaching 3.88 MT for September 2025, while the figure for September 2024 was 3.54 MT.
During the month under review, the largest iron ore producer's sales in the Chhattisgarh division were 2.58 MT, 11.21 per cent higher than 2.32 MT in the same month of FY25.
Conversely, its iron ore sales in Karnataka went up by 6.56 per cent YoY to 1.30 MT, compared to 1.22 MT in the same period last year.
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