Indian mill scale export, which was very quiet from sometimes, has seen some enthusiasm on account of rising iron ore prices.
Steelmint learnt that, Indian exporters have resumed purchases from domestic market since last week. Purchase price for 68/70 Fe mill scale is assessed at INR 2,000-2,200/MT (USD 30-33/MT ), delivered to Indian port.
China is the largest buyer of seaborne mill scale and is used to blend with iron ore.
Indian mill scale export has dropped sharply in FY16. Total of 0.22 MnT was exported in FY16 against in 0.49 MnT in FY15.
It is to be noted that export of mill scale do not attract any export duty, unlike iron ore (high grade), which attracts a duty of 30%.
No trades for mill scale have been heard concluded but prices levels for bulk shipments are estimated at USD 65-70/MT, CFR China and around USD 50-55/MT, FoB Indian port.
Whereas, iron ore prices for 62% Fe are assessed at USD 64-65/MT, CFR China.
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