NMDC share price declines led by domestic price cuts amidst rising volumes

Stock Market Today: NMDC share price declined in the intraday trades on Wednesday. The weakness in the stock is led by declining iron ore prices, as NMDC announced domestic price cuts even though provisional volume numbers reported by NMDC showed decent production and sales growth in Q1.

NMDC Domestic iron ore price cuts

NMDC on 1 July 2025 announced more than a 9% cut for prices of its produce for the month of July 2025. As per the NMDC release, Baila Lump (65.5%, 10-40mm) iron ore has been set by the company at ₹5,700 per ton, marking a decline from the ₹6,300 per ton it had set for the month of June 2025. The Baila Fines (64%, -10 mm) iron ore prices have been set at ₹4,850/- per ton, lower than ₹5,350 per ton in June 2025.

The international iron ore prices ex China, which were trading at more than $106 a ton by the end of February 2025, have now dipped to below the $94 a ton level. The same is leading to NMDC announcing price cuts. The season factors as the onset of monsoon also remain a factor, as steel demand for long products may see some decline with construction activities getting hampered by the onset of the monsoon.

The near term outlook remains weak, as per analysts. The domestic prices are still at a 16% discount versus the 20% long-term average, which suggests prices are likely to remain under pressure, said analysts at Kotak Institutional Equities. They expect higher domestic supply due to lower exports and the ramp-up of merchant iron ore mines to raise the iron ore surplus in India.

As prices are a dampener, some support to investor sentiments is to be provided by rising volume.

NMDC iron-ore volumes

The iron-ore p[roduction volumes reported by NMDC during the month of June at 3.57 Million tonne jumped over 3.37 Mt in the same month last year. During the quarter gone by while the Production volumes at 11.99 MT increased 30% over 9.19 Mt in the same period last year, the sales vomers at 11.51MT also increased around 15% year on year.

Hence it is the pick up in iron-ore prices that remains crucial to helping support investor confidence..

NMDC share price that is down around 4.5% in last one month, dipped up to 2% on Wednesday.

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