Kolkata, Jan 22 (IANS) State-run National Mineral Development Corp (NMDC) is planning its own pricing formula for iron ore to reflect the dynamics of the domestic market rather than blindly benchmarking it to global trends, managing director Rana Som said Friday.

'The long-term contracts for the next financial year for domestic buyers are up for renewal and we are seriously considering coming out with a new pricing formula,' Som told reporters on the sidelines of a conference on mining.

NMDC is India's largest producer of iron ore.

The company's current rates are benchmarked to prices dictated mainly by Japanese steel makers, who he said were gradually losing their importance in the global iron ore market with the emergence of China.

NMDC's prices should also reflect levels of Indian iron ore production, Som added.

'If there is high growth in domestic iron ore production leading to a surplus scenario, domestic prices should reflect that and not just only global situations.'

Som said the prices should also factor in differences in long-term contracts against spot prices.

On the proposed follow-on offer of the company, he said the draft prospectus would be filed with capital market regulator Securities and Exchange Board of India by month-end.

'We expect to complete the issue by the end of the current financial year,' Som later told reporters after signing a strategic alliance with Tata Steel.