In a bid to offer much-needed succour to the domestic steel producers from shooting raw material prices, state-run mineral giant National Mineral Development Corporation (NMDC) today decided to reduce the long-term prices of iron ore by a flat 25 per cent, but the move has failed to enthuse producers who said they had expected a better deal.

“NMDC board deliberated at length on the recessionary impact on the economy with special reference to steel and iron sector and decided to rationalise the price structure by effecting a reduction of flat 25 per cent on long-term supplies to provide respite to our buyers (steel makers) with effect from December 1. The reduction in absolute terms will vary from Rs 470 to Rs 1,153 on various grades of our ore,” CMD Rana Som told The Indian Express after emerging from the board meeting. He said the move would expectedly boost the steel sector “and help them combat the recession which they are currently suffering from”.