Millennium Post

RINL urges ministry to work on NMDC to slash key steel input

Anticipating erosion of bottomline due to the twin effect of iron ore price hike and decline of steel prices, state-run Rashtriya Ispat Nigam has urged steel ministry to impress upon NMDC to bring down prices of key steel input.

'While we recorded a reasonable level of profit in Q1 of this fiscal, our bottom line is severely affected in Q2 due to sharp increase in the price of iron ore,' RINL has said in a monthly report to the steel ministry.

RINL had recorded around Rs 3,000 crore turnover in the first quarter of the current fiscal, registering a growth of 16 per cent over the same quarter last fiscal. However, it did not divulge the amount of net profit for the quarter.

Public sector NMDC had increased the contract price of iron ore by 8-13 per cent for the July-September quarter. During the immediate previous quarter, it had hiked iron ore prices by 8-10 per cent as well.

'The impact is about Rs 15 to 20 crore a month depending on the grade of supply of iron ore. The increase in the price of DRCLO is 13 per cent due to which there will be hardly any margin for RINL,' RINL said.
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