Mill Scale, which is composed of Iron oxides and is in the form of fines, has witnessed fall in domestic prices by INR 200-350/MT this week.
Continuous fall in domestic Mill scale and global Iron ore prices have pushed buyers to hold purchases. In last one month, prices have fallen by INR 600-850/MT.
At Durg (Chhattisgarh), prices are INR 3,000/MT (basic) and according to traders, market looks to improve because of good demand for Billets. While, demand in Chennai is quite low. Prices in Kolkata (West Bengal) and adjoining areas aren’t expected to fall because of increasing local consumption.
Indian Mill Scale Prices
|
Place |
Grade |
Prices |
W-o-W |
| Raipur | 70/68% | 2,800-3,000 | -350 |
| Vizag | 70/68% | 2,800-3,500* | 0 |
| Kandla | 70/68% | 2,600-2,800* | -250 |
| Chennai | 70/68% | 2,600-3,000* | -200 |
Ex-plant prices in INR/MT
* delivered
Source: SteelMint Research
Mill Scale export prices are in the range of USD 72-73/MT CFR China. Despite zero export duty and distance based charges, exports (small/bulk) have slowed down over weak Chinese Iron ore prices.
Indian exporters are selling stock to local buyers and wonder if they can export again in near future. Temporary shut down or production cuts by sinter plants 01 Nov, 2014 onward, to curb pollution and reduce smog during the APEC summit in Beijing, has weakened export market too.
Mill Scale (Fe 68-70%) production is nearly 2% of total finished steel output. It is generated in rolling mills during hot rolling process/continuous casting of steel while solidification and is procured in small quantities from various small/medium units for export purpose.
The material is used by Blast Furnace operators and Iron Pellet manufacturers for increasing the ferrous oxide (FeO) content in further process. Besides, it is consumed in Induction Furnaces to add oxygen. While, Integrated Steel Plants (ISPs) consume Mill Scale in sinter plants for recycling process.
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