Indian Mill Scale Prices fall in line with Global Prices

Slipping Iron ore prices in the global market has impacted Indian Mill scale prices. India is largely dependent on exports of Mill scale and about 50% of total generation is exported from India. With Iron ore prices sinking to USD 61/MT, CIF China, buyers prefer Iron ore over Mill scale.

Mill scale prices have corrected by up to USD 5-10/MT in the global market and INR 300-400/MT in the domestic market on M-o-M basis.

Current prices are assessed at USD 66-67/MT, CIF China (in bulk) and around USD 50-55/MT, FoB India. However, there are fewer export offers from Indian traders owing to higher realizations in the domestic market.

“Mill scale prices have crashed in line with Iron ore prices. There are few buyers for Mill scale at the moment in China. Indian exporters are holding about 100,000-150,000 MT stock at different ports in India, which is bought at a very high price”, said an exporter based in Eastern region.

Two shipments were made by Indian exporters from Kandla Port in the month of January, he further added.

Domestic Prices

Indian domestic prices are assessed at INR 2,400-2,500/MT (ex-Raipur), INR 2,400-2,600/MT (delivered to Kandla Port).

Domestic traders highlighted that falling Iron ore prices in the domestic market has pull down Mill scale prices as well.

“Mill scale manufacturers prefer Iron ore fines as prices have fallen sharply by miners. Mill scale prices should come down in proportion to Iron ore prices”, said an Indian trader.

Mill Scale Prices

Source: SteelMint Research