India: Raipur Re-bar Manufacturers offer Mill Scale at INR 3,700-3,900/MT

1. Mill Scale of grade Fe 70/68% settled at INR 3,800/MT (Ex-Raipur)
2. Chennai based Re-bar manufacturers offer Mill Scale at INR 3,500-4,000/MT (Ex-Chennai)
3. Indian exporters seeking Mill Scale at INR 3,900-4,000/MT (Ex-Kandla)
4. Last trade was settled at USD 85/MT FOB Chennai

Mill Scale offers in Raipur (Chhattisgarh), India’s one of the largest Re-bar manufacturing region, are hovering in the range of INR 3,700-3,900/MT (basic) Ex-Raipur.

Last deal of 13,000 MT Mill Scale (Fe 70/68%) was heard to be settled at USD 84-86/DMT FOB Chennai port by Gimpex, a government recognized trading house in the month of July, 2014.

Market participants mentioned that there are not many offers from Indian exporters owing to higher realizations in domestic market and lower prices in Chinese market.

However, some deals were heard closed at INR 3,900/MT delivered Kandla port.

Spot Iron ore prices have recovered from 3 years low. Currently, it is at about USD 95-96/MT CFR China for Fe 62%. 

Mill Scale is a by-product generated during re-rolling process and generally used by Pellet manufacturers and Blast Furnace operators. Indian Mill Scale export has increased recently, as it is duty free and without differential freight charges, unlike Iron ore.