- Tight supply, uneven demand drive price trends
- Moderate demand limits price upside in Jalna
Mill scale prices across major Indian markets showed a mostly upward trend during the assessment on 9 September, supported by healthy buying interest, lower availability in some markets and improved exporter demand. BigMint’s Fe 69% mill scale assessment at Kandla increased by INR 50/t w-o-w to INR 7,350/t DAP Kandla, while in Raipur prices rose by INR 50/t to INR 7,250/t ex-works. In contrast, Jalna prices remained unchanged at INR 6,350/t ex-works, as demand remained slow to moderate and sellers continued to execute earlier commitments.
Kandla: Healthy export demand, lower inventories
Kandla mill scale prices increased amid healthy demand and declining inventories at exporters’ ends following recent vessel shipments. Current prices were heard above INR 7,300/t, with higher-grade material quoted above INR 7,500/t. The reduction in inventories encouraged exporters to replenish stocks; however, buyers remained cautious about paying significantly higher prices after the sharp increase witnessed earlier.
Material inflows from Nagpur and Jalna into Kandla also indicated sustained interest from outside buyers. Around 5,500 t of deals were concluded during the publishing window at INR 7,300-7,450/t DAP Kandla. Overall, lower inventory levels and healthy demand provided support to prices, while cautious buying limited a sharper increase.
Raipur: Tight availability amid price mismatch
Raipur mill scale prices also increased, although the market remained highly fragmented, with deals reported across a wide range of INR 7,000-7,500/t ex-works. Some sellers were seeking higher prices amid limited availability, while outside buyers were reluctant to fully accommodate these levels.
The price mismatch has made traders cautious, particularly those who had sold material earlier at lower prices and now face higher replacement costs. This has resulted in selective buying and wider price variations in the market. Around 6,000 t of deals were recorded during the assessment window. The combination of higher replacement costs and uneven availability supported prices, although resistance from buyers capped the upside.
Jalna: Prices stable amid moderate demand
Jalna mill scale prices remained unchanged at INR 6,350/t ex-works, as demand stayed at a slow-to-moderate pace. Some fresh purchase orders were heard, but mill offers largely remained unchanged. At the same time, a few sellers selectively reduced their offers due to limited material availability, while others continued fulfilling previously committed orders.
The balance between moderate demand, stable mill offers and uneven availability kept prices range-bound. Unlike Kandla and Raipur, where tighter availability and stronger buying interest provided upward pressure, Jalna lacked sufficient demand momentum to push prices higher. Around 7,200 t deals were recorded in the range of INR 6,300-6,500/t exw Jalna.
Leave a Reply