State-run iron ore producer NMDC announced a price hike for select iron ore grades on Wednesday, with the lump ore rate increased by ₹150 per tonne to ₹5,400 per tonne. According to the regulatory filing issued on stock exchanges, the company has maintained the prices of iron ore fines at ₹4,500 per tonne. The revised prices are effective from 9 September 2026, as reported by the company. This selective price increase marks a recovery after consecutive months of price cuts implemented in July and August, with the lump ore price rising from ₹5,250 per tonne set on August 8, 2026. The company has clarified that these prices are exclusive of Royalty, DMF, NMEDT, Cess, Forest Permit Fee, transit fee, GST, environmental Cess and other taxes.
The price revision reflects NMDC's tactical pricing power as it maximizes realization on higher-grade iron ore where demand remains resilient. By selectively raising lump ore prices while keeping fines steady, the state-run miner is offsetting the impact of high domestic ore availability and sluggish international prices. This strategic approach allows NMDC to maintain strong volume-driven operational leverage, backed by a provisional production of 4.07 million tonnes in August 2026, representing a YoY expansion of approximately 20.77% compared to 3.37 million tonnes in August 2025. The company holds strong positioning as it tracks aggressively towards its 60 million tonnes production target for FY27.
Following the price announcement, NMDC shares responded positively to the market. On Tuesday, the stock ended 0.60% higher at ₹84.50 per share on the BSE, as reported by NDTV Profit. The company reported a standalone Profit After Tax (PAT) of ₹2,007 crore in Q1 FY27, growing from ₹1,969 crore in Q1 FY26. The price increase is expected to provide margin support for Q2 FY27 operations, with the company maintaining its role as a key market orchestrator in the domestic iron ore sector.
The price revision comes as the Indian steel industry expands rapidly, with major manufacturers planning to double capacity by FY30-31, driving long-term iron ore demand. NMDC, contributing over 17% to India's total iron ore production, acts as a primary supplier and pricing benchmark. While global prices remain volatile due to Chinese demand shifts, domestic demand remains insulated due to robust government infrastructure spending. The company announced the incorporation of a wholly owned subsidiary in IFSC, GIFT City, Gujarat on September 2, 2026, to expand its international and treasury operations, positioning it well for its 100 million tonnes per annum long-term goal.
