India's biggest iron ore producer NMDC, which signed a MoU with worlds biggest mineral co Rio Tinto for exploring mining opportunities globally is set to announce a price hike.

“Rio Tinto and BHP has already done it. Now it is our turn and whatever the companies negotiate will be applicable from April 1,” said said Rana Som, Chairman of NMDC.

This is no good news for steel makers as NMDC plans to revise prices upwards for the year to be implemented retrospectively.

To add to the woes of steel companies, China has hiked the export tax on coke and coking coal significantly, a move that will push prices of coking coal, a key raw material, higher.

Though the coal companies are sensing a big opportunity but they are also aware of a downtrend cycle of steel firms in the last few months.

Coking coal prices has already jumped by 300 per cent and in India steel firms are finding it difficult to maintain the margins as government has indirectly put a ban on any price hike.

Going forward after the Chinese tax hike and in case NMDC hikes iron ore prices, the steel firms without captive mines will face the maximum brunt.