Chinese buyers have further reduced their purchase prices for Mill Scale, citing Iron ore price correction in near-term.
Speaking to Chinese importers, it is assessed that in last week, buying interest was seen at USD 84-85/MT CFR China, but this week, buyers are expecting at USD 80-81/MT CFR China. It is to be noted that Chinese 1-week national holiday is starting from 01 Oct, 2014, which is one of the reasons, why demand has fallen further.
On the contrary, Indian domestic prices are quite firm owing to decent demand from Pellet and sinter plants, which use Mill Scale for blending purpose because of high iron content.
Trade-wise
- Raipur prices are hovering in the range of INR 3,700-3,800/MT ex-works
- Plants located near Nagpur (Maharashtra) heard to be buying Mill Scale at INR 4,500-4,800/MT based on quantity and payment terms
- Kandla’s prices are heard to be at INR 3,100-3,200/MT ex-works
- Last trade of 70% Fe Mill Scale was settled at USD 72-74/MT FOB Chennai
No Clarity over Goa 5th Iron Ore E-auction: Goa 5th e-auction for 2.2 MnT Iron ore, which was scheduled on 02 Sep, 2014, is still to take place as Chinese spot Iron fines prices have slipped to 5 years low, making exports unviable.
Leave a Reply