State-owned NMDC on Thursday said it has slashed prices of iron ore and fines by Rs 200 per tonne and Rs 250 per tonne, respectively.

The rates of lump ore have been revised to Rs 5,800 per tonne and that of fines to Rs 5,060 per tonne, NMDC said in an exchange filing. The prices are effective from Thursday and exclude royalty, District Mineral Fund (DMF), National Mineral Exploration Trust (DMET), cess, forest permit fee, and other taxes, the company said.

In the last price revision announced on January 24, the company had fixed the rates of lump ore at Rs 6,000 per tonne and of fines at Rs 5,310 a tonne. Lump ore or high-grade iron ore contains 65.53 per cent Fe (iron), while fines are inferior grade ore with 64 per cent and less Fe content.

Iron ore is one of the key raw materials used in the manufacturing of steel, and any movement in its prices has a direct impact on rates of steel, an alloy widely used in segments such as construction, infrastructure, automobile, and railways.

Hyderabad-based NMDC (formerly known as National Mineral Development Corporation) under the Ministry of Steel contributes around 20 per cent to India's total iron ore production.