- Slower finished steel sentiment kept overall buying sluggish
- Kandla prices decline on inventory build up pressure
Mill scale prices across major domestic markets exhibited softer trends during the assessment period ending 21 July 2026, reflecting slowed overall demand dynamics. According to BigMint’s assessment, Fe 69% mill scale prices in Kandla declined by INR 100/t to INR 7,750/t DAP compared with 15 July, pressured by weaker export demand and lower buyer bids. Additionally, Raipur prices lowered by INR 50/t to INR 7,000/t ex-works, weighed by monsoon slowdown in procurement, and Jalna prices lowered by INR 200/t to INR 6,400/t ex-works against 15 July on reduced mill offers and cautious buying.
Kandla: Export weakness drags prices lower
Mill scale prices in Kandla weakened during the week by INR 100/t this week as exporters lowered purchase prices amid subdued overseas demand. Market sentiment continued to soften as several buyers lowered their bids by INR 200-300/t, quoting INR 7,500-7,650/t for fresh purchases. Meanwhile, dispatches against earlier bookings concluded at INR 7,800-7,900/t are still underway, while fresh transactions remain limited amid uncertainty over near-term price direction. Sellers, however, are resisting further price cuts despite weaker buying interest.
According to market participants, exporters are currently holding comfortable mill scale inventories, while export realizations remain under pressure. Current indications for overseas sales are hovering around USD 93-94/t FOB, which are insufficient to support the procurement costs of existing inventories. As a result, exporters are seeking improved export premiums before committing to fresh cargoes. This gap between domestic procurement costs and export realizations has delayed planning for upcoming shipments. Unless export economics improve and vessel bookings pick up, the Kandla market is expected to remain under mild downward pressure in the near term.
Raipur: Need-based buying kept market rangebound
Mill scale prices in Raipur edged down by INR 50/t this week, supported by moderate buying interest at old pricing levels. AMarket remained largely unchanged, as heavy rainfall continued to affect market operations. Around 1,600 t deals were reported at existing levels. Although supply remained adequate, excessive moisture in the material delayed dispatches and the execution of pending orders, limiting fresh trade.
A Raipur-based trader told BigMint, “Mill scale currently contains around 15-20% moisture, making it difficult to lift previously booked orders.” Market participants expect buying interest to improve once the material dries and normal dispatches resume.
Jalna: Prices edge lower, with cautious buying
Mill scale prices in Jalna decreased during the assessment period as mills quoted offers in the range of INR 6,300-6,500/t ex-works. However, buyer acceptance remained limited due to sluggish demand and slowed finished steel sentiment, with only need based transactions continuing to conclude around INR 6,400/t.
Around 1000 t deal were being heard from participants. Demand remained cautious as limited upside in flat and semi-finished steel prices continued to weigh on raw material procurement. Dispatches against previously booked orders, including cargoes concluded around INR 7,300/t FOR Wardha, remained ongoing, while any fresh aggressive buying activity was largely muted.
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