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NMDC shares slip as iron ore offtake lags production
Despite production jumping 26% year on year to 15.2 million tonnes, offtake rose just 1.8% to 11.7 million tonnes, keeping prices under pressure after two cuts in July and August.
NMDC Ltd shares are down about 14% from the ₹97.49 52-week high recorded on 3 June, after results reflected a divergence between production and sales, according to LiveMint Markets. The state-owned iron ore miner’s production rose 26% year on year to 15.2 million tonnes in the June quarter (Q1FY27), while offtake increased only 1.8% to 11.7 million tonnes. The outlet said the gap could persist into the monsoon-driven, seasonally weak Q2. After a price cut on 10 July, sales declined 1.7% year on year in the prior month, leading NMDC to cut prices again on 8 August. LiveMint Markets said the two reductions total more than 7%, leaving current prices trailing the Q2FY26 average. While NMDC aims to meet its FY27 iron ore production guidance of 60 million tonnes, ICICI Securities noted that iron ore prices are likely to remain under pressure near term due to higher domestic availability, lower international prices, and slower steel capacity additions. The company is also seeking to reduce sensitivity to iron ore price swings by expanding value-added output such as pellets, targeting 3.0 million to 3.3 million tonnes in FY27 from 2.4 million tonnes in FY26, and by ramping a coal business expected to contribute about ₹5,000 crore in revenue over the next three years, LiveMint Markets reported.