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NMDC shares fall after second straight month of price cuts by the PSUFor the financial year 2026, NMDC has set a volume target of 55 million tonnes, aiming to utilise its environmental clearance (EC) capacity entirely.By Nigel D'Souza   July 1, 2025, 9:38:28 AM IST (Published)2 Min ReadShares of NMDC Ltd. fell over 2% on Tuesday, July 1, as the company cut its prices for key products for the second straight month.

NMDC has cut its prices of lump ore by ₹600 per tonne to ₹5,700 per tonne. It has cut the price of fines by ₹500 per tonne to ₹4,850 per tonne. The price cuts are effective starting today.

Weak global prices, coupled with weak Chinese demand are some of the key factors for the cut in prices. Monsoon is another factor, as with its onset resulting in demand weakens.

NMDC had cut prices in June as well by ₹140 - ₹150 per tonne.

For the March quarter, NMDC's revenue increased due to higher contribution from pellets and other minerals. However, iron ore realisations were weaker than expected. On the operational front, its earnings were weak as higher employee and other expenses weighed on margins.

NMDC's management told CNBC-TV18 last month that they have moved to a formula-based pricing mechanism, which could prove to be a game changer for the company.

"What we are trying to do is move to formula-based pricing, which we started last time. A couple more instances of this new formula are being tried out. If that stabilises, I think it will be a game changer,” Amitava Mukherjee, CMD of NMDC and NMDC Steel, told CNBC-TV18.

For the financial year 2026, NMDC has set a volume target of 55 million tonnes, aiming to utilise its environmental clearance (EC) capacity entirely. “We are targeting to do 100% of our EC,” Mukherjee said.

Shares of NMDC are currently trading 2.3% lower at ₹68.38. The stock is trading below its 52-week low of ₹85.13, having declined 4% in the last one month.

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