Indian Mill Scale Prices hold firm this Week

Mill scale prices in Indian market hold firm this week. Trading activities remained low owing to festive mood. Current prices for Fe 70/68% Mill scale are assessed at INR 2,600-2,800/MT delivered to Kandla port and INR 2,800-3,000/MT ex-works Raipur.

Pellet manufacturers, who are the largest consumer of Mill scale in India, have slowed down their purchases owing to falling Pellet prices and increased supply of Iron ore fines.

A trader based in eastern region highlighted that demand is quite low from Pellet manufacturers and exporters. None of them are willing to stock at these levels. Last trade of Fe 70/68% was concluded at around INR 2,700/MT delivered to Kandla Port.

A Mill Scale exporter highlighted, “We have good amount of stock lying at port, which was bought at high price. Since Chinese prices have fallen, we cannot afford to sell at such low prices. Buying interest from Chinese traders are observed at USD 71-72/MT, CIF China.”

Rising Spot Iron Ore Prices give Some Hope to Indian Exporters

Spot Iron ore prices in Chinese market moved sharply by USD 3/MT on Tuesday, which has given some hope to Indian Mill scale exporters. Mill scale and Iron ore prices are proportional to a very great extent.

Mill Scale Prices as on 31 Dec’14

Source: SteelMint Research