Mumbai: State run Rashtriya Ispat Nigam Ltd (RINL) has asked steel ministry to hammer into NMDC to lower prices of key steel input.
RINL is fearful of erosion of the bottom line because of the twin effect of iron ore price hike and decline of steel prices.
RINL, in a monthly report given to the steel ministry stated that they recorded a reasonal level of profit in Q1 of this fiscal but their bottom line was severely affected in Q2 due to sharp increase in the price of iron ore.
Registering a growth of 16%, RINL had recorded close to Rs3000 crore turnover in the first quarter of current fiscal.
The increase in the price of the contract price of iron ore by 8- 13% for the July- September quarter by NMDC has resulted in a hike of about Rs15 to 20 crore a month. This depends on the grade of supply of the iron ore. This in turn hardly leaves any margin for RINL due to the sharp surge in the steel prices.
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