National Mineral Development Corporation （NMDC） may increase iron ore export prices by 17-20 per cent in the next financial year to cash in on higher global prices.

The public sector miner is also mulling a shift from annual to quarterly contracts for overseas customers.

“Given the pricing environment, NMDC is looking at a 17-20 per cent price rise from April 2011 to cash in on higher prices in the international market,” said a top NMDC official, requesting anonymity. He said the increase was essential to offset the rising cost pressure.

NMDC, which has a five-year supply contract with Japanese and South Korean companies, will renew these in April. The contracts are annual in nature.

“As the nature of trade has shifted from annual to quarterly contracts across the world, we are also mulling quarterly contracts. However, these decisions will depend on the approval of the central Cabinet,” he said.

NMDC produces around 30 million tonnes iron ore per annum, out of which 10 per cent is exported.

Recently, iron ore prices in the international market touched the $190-200 mark per tonne on a freight-on-board basis on the back of Chinese demand and supply constraints in major producing nations like India.

The ban on export of iron ore from Karnataka and closure of some mines in Orissa and Chhattisgarh to check illegal mining have also contributed to the spurt in prices