India: Mill scale exports drop over 30% y-o-y in FY’25 amid weak overseas demand

India’s mill scale exports were recorded at 441,424 tonnes (t) in fiscal year 2025. Exports declined by 35% y-o-y against 596,450 t in the previous fiscal year 2024, as per vessel lineup data maintained by BigMint data. The decline was attributed to sluggish demand from major importing countries, a shift in procurement strategies, and global steel market volatility.

Notably, higher export volumes were recorded from Kandla port. The port’s strategic proximity and pricing advantages still make it a preferred loading point for exporters. In FY’25, out of the total export volumes of 441,424 t, Kandla port contributed around 394,924 t, whereas rest volumes of 46,500 t was exported from Chennai port.

Country-wise contribution on mill scale export:

• The Philippines was the largest importer of Indian mill scale with 222,055 t in financial year 2025 (FY’2025), up by 27% y-o-y against 175,400 t in FY’2024. The country continued its strong buying to enhance Fe content in raw material blends.
• Vietnam emerged as the second largest mill scale importer with 110,369 t in FY’2025, a drop was seen by 23% against 142,997 t in FY’2024.
• Indonesia imported 55,000 t mill scale from India in FY’2025, sharply declined by 65% against 159,223 t in FY’2024.
• Notably, other major importer was Malaysia recorded 54,000 t in FY’2025, dropped by 55% as compared to 118,830 t in the same period last year.

Why mill scale export fall in FY’25?

• Lack of demand in the major importing countries: A decline in demand from key importing countries such as Vietnam, Indonesia, and Malaysia driven by subdued global finished steel consumption and a strategic shift towards domestic production over imports has adversely impacted mill scale export volumes, BigMint noted.
• Sharp drop in global iron ore prices: Yearly average of Fe 62% global benchmark index was recorded at $105/t CFR China in FY25 versus $119/t CFR China in FY24. Elevated iron ore stockpiles at Chinese ports have dampened import demand, exerting downward pressure on prices. The intensifying U.S.-China trade war, marked by significant tariffs, has heightened recession fears and negatively impacted commodity markets, including iron ore.
• Logistical and pricing constraints: Lower availability of competitive freight and fluctuating domestic prices limited export competitiveness have weighed on mill scale export.

Domestic mill scale price trend: Mill scale average prices in Kandla were recorded at INR 6,993/t DAP in FY’2025, down by INR 340/t y-o-y as compared with FY’24. While average prices in Raipur were recorded at INR 6,838/t exw in FY’2025, up by INR 167/t y-o-y as compared with FY’24.

Outlook: Mill scale exports from India are expected to maintain moderate momentum in the near term, supported by inquiries from Southeast Asia. However, export volumes in FY’26 will largely depend on demand recovery in key markets and the outcome of ongoing negotiations for new deals.