A Mill Scale exporting company located in the northwest region of India i.e. Gandhidham in Gujarat, has shipped 27,000 MT of the material to China today.
Space Exim has exported dry bulk (DB) Mill Scale at USD 88/MT FoB which converts to INR 5,280/MT (USD 1 = INR 60). Freight rate is USD 12/MT. Vessel named Propel Progress has been shipped from Kandla port.
The deal was concluded on 16 Sept, 2014 with a UAE based trader named Al Kahf Metal. The unloading Chinese port is Nantong in Jiangsu.
Chinese spot Iron ore fines (Fe 62%) prices that directly affect Mill Scale market, have jumped down by USD 8/MT in contrast to previous month and are at USD 85/MT CNF China. Although, prices are still to recover, exporter sold Mill Scale so as to clear stockpile.
Previous to this, vessel named Osprey 1 carried 30,000 MT Mill Scale from Kandla port, on 20 Aug, 2014; unloading port was Nanjing in China. The deal was closed at USD 82.4/MT FoB.
In Indian market, Mill Scale prices are in the range of USD 3,400-3,500/MT ex-plant Raipur (Chhattisgarh). Also, exporters are looking to source the material at about INR 3,700-3,800/MT delivered Kandla, for which offers are missing.
In FY14, India exported 1.08 MnT Mill Scale from various ports such as Vizag, Kandla, Kolkata, Chennai and JNPT. And, 0.2 MnT Mill Scale has been exported to China and Philippines in Apr-Aug’14 from Kandla, Mundra and Chennai port.
Mill Scale is an exportable and finished material with high grade (Fe 68-70%) and density. It is free from export and differential based charges (DBC) but documentation becomes long as is excisable. It is tough for traders and exporters to obtain Mill Scale in volume as is available in small quantities with many small and medium steel mills.
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