Indian mill scale exporters have kept their offers unchanged to Chinese buyers this week. With falling iron ore prices in Chinese spot market, buying interest has certainly weaken. According to trade sources Indian exporters are offering 70/68 % Fe mill scale at around US$ 127-128/MT, however buying interest is largely seen at around US$125-126/MT CFR China.
Mill scale is a by product generated during re-rolling process and used by pellet and blast furnaces because of high iron content. Indian exports of Mill Scale have gone up recently as it does not attract any export duty or differential freight charge by railways, unlike iron ore.
With Indian iron ore exports falling down constantly, exporters have shown there interest in exporting mill scale. Indian exporters also mention that current prices for iron ore of grade 63% in Chinese spot market is hovering around US$ 131-132/MT.
Indian Domestic Market
In domestic market prices are hovering in the range of Rs 5,500-5,700/NT Delivered Vizag port.
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