Iron ore price hike to impact Indian cos by 73-74%: NMDC

(NMDC) plans to hike the prices of iron ore between 80-90% this fiscal year 2010-11on the back of a high global price; a move that is likely to cause steel prices to double as well. About 54-58% of the provisional hikes have already been announced and the metal sectors were trading weak today. Commenting on the price hike Rana Som, CMD, NMDC said that impact of this price rise would be lower for domestic customer, at about 73-74%, given the appreciation of the rupee. The Japanese mills contracts for iron ore still need to be fixed by NMDC and Som said that the provisional rise in iron ore price would continue till they finalised the deal with the Japanese mills. The hikes iron ore prices and the subsequent rise in steel prices would greatly undermine the government's efforts to curb the raging inflation figures.