New Delhi, June 16 -- NMDC Ltd's price cuts undertaken earlier this month reflect the subdued outlook for the iron ore market. Still, domestic prices are at a much lower discount to import parity prices compared to the long-term average, which may warrant further price cuts.

The domestic iron ore market is projected to record a surplus of 32 million tonnes (mt) in FY26, up from 18 mt in FY25 and 2 mt in FY24, owing to a significant rise in production and a drop in exports, according to a Kotak Institutional Equities report on 13 June. The issue of environmental clearance to Lloyd Metals and Energy to expand capacity to 26 million tonnes per annum (mtpa) from 10 mtpa, and higher captive mining by steel producers is expected to push up dom...