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India's NMDC cuts iron ore prices by 2-11 pct on month

Tuesday, 9 Oct 2012 | 2:58 AM ET

MUMBAI, Oct 9 (Reuters) - India's National Mineral Development Corporation has cut iron ore prices by 2-11 percent for October from September after a request from domestic steel makers, which have been slashing capacity due to lack of the raw material, a company source told Reuters.

"There was a demand from domestic steel manufacturers to reduce prices, so this was done to support them," the source at the country's biggest iron ore miner said on condition of anonymity.

Steel makers have faced challenges in obtaining iron ore, an important steel making ingredient, because domestic production has been reduced by mining bans in key iron ore producing states like Karnataka and Goa. That has forced them to turn to expensive imports.

(Reporting by Siddesh Mayenkar; Editing by Jo Winterbottom)

((siddesh.mayenkar@thomsonreuters.com)(+91-22-61807163)(Reuters

Messaging: siddesh.mayenkar.thomsonreuters.com@reuters.net))

Keywords: INDIA NMDC/