Last bulk shipment of mill scale from India was exported to Philippines at a premium.
Last export shipment of 35,500 MT mill scale was concluded at USD 44/MT FoB Indian West Coast, according to trade sources. Shipment was made on 17 Jun’16 from Kandla Port (Gujarat).
According to sources, cargo belongs to KK Enterprises and is being shipped to Philippine Sinter Corporation (PSC), Philippines. PSC is owned by JFE Steel Corporation, a Japanese steel company. The company manages and operates the only sinter production facility in the world.
On the other hand, prices in Chinese market are assessed at USD 35-40/MT, FoB Indian port for 68/70% Fe mill scale, which is equivalent to USD 45-50/MT, CFR China. Prices in local market are assessed at INR 2,000-2,200/MT (USD 30-33/MT) ex-Kandla Port, Gujarat.
Indian mill scale export has dropped sharply in FY16. Total of 0.30 MnT was exported in FY16 against 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) that attracts a duty of 30%.
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