- Kandla mill scale prices gain as export demand improves
- Raipur remains stable amid price resistance from buyers
Mill scale prices across major Indian markets showed divergent trends during the assessment week ended 2 September, with regional markets responding differently to changes in buying interest, export demand and prevailing iron ore prices. BigMint’s Fe 69% mill scale assessment at Kandla increased by INR 150/t w-o-w to INR 7,250/t DAP Kandla, while Jalna prices declined by INR 50/t to INR 6,350/t ex-works. In contrast, Raipur prices remained unchanged at INR 7,200/t ex-works.
Kandla mill scale prices gain as export demand improves
The Kandla market witnessed a recovery in prices after exporters increased their buying indications for fresh cargoes. Market participants said the market appeared to have reached a bottom in the previous week, prompting exporters to return to the market for fresh bookings at higher levels. Current buying indications were heard at around INR 7,100-7,400/t DAP Kandla, while around 7,100 t of deals were recorded during the publishing window at INR 7,200-7,300/t.
Exporters’ inventories remain relatively high, although market participants indicated that stocks have eased somewhat from previous levels. Meanwhile, discussions around larger-volume purchases have increased, supported by the recent rise in iron ore prices. Some traders indicated the possibility of a vessel-sized cargo being concluded, although this was yet to be confirmed at the time of publication.
Raipur mill scale market remains range-bound
Raipur mill scale prices remained stable as higher seller offers met resistance from buyers. While broader market conditions remained positive, buyers continued to show limited willingness to accept higher prices, resulting in subdued fresh procurement and a relatively narrow trading range.
A major trader told BigMint, “We have reduced our buying activity at current price levels as buyers in outside markets are seeking lower prices. The market direction should become clearer over the next few days. If buyers accept higher levels, prices could move up further; otherwise, prices may face downward pressure.”
Deals for around 2,200 t were recorded during the publishing window at INR 7,250-7,300/t.
Jalna prices decline amid lower buying indications
In Jalna, mill scale prices edged lower following reduced purchase indications from buyers. Fresh orders from a Wardha-based plant were heard at slightly lower levels, with current buying indications reported at around INR 6,100-6,400/t ex-works Jalna.
Despite the decline, prevailing price levels remain workable for local sellers, particularly given the relatively stable logistics costs and proximity to key consuming markets. Market participants said Jalna material continues to remain commercially viable for supply to nearby markets, including Kandla, although lower buying indications have limited further price gains.
Deals for around 7,050 t were recorded during the publishing window at INR 6,200-6,350/t ex-works.
Leave a Reply