India: Mill scale exports rise over 40% y-o-y in FY’26 on strong South Asian demand

• Kandla emerges as dominant export hub
• Southeast Asia dominates demand landscape

India’s mill scale exports stood at 632,530 tonnes (t) in FY’26, registering a robust 43% y-o-y growth compared to 441,424 t in FY’25, according to vessel lineup data from BigMint.

The surge in exports was primarily driven by strong demand from East Asian markets, coupled with sustained buying interest from key importing countries. Additionally, Indian exporters actively explored overseas opportunities amid evolving procurement strategies and heightened volatility in the global steel market. These factors collectively supported a notable expansion in export volumes during the fiscal year.

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’26, out of total export volumes of 632,530 t, Kandla port contributed around 573,530 t, whereas 34,000 t was exported from Chennai port and rest 25,000 t was exported from Vizag port. In comparison, Kandla had handled about 394,924 t of total exports in the previous fiscal year, highlighting a significant increase in share.

The export market remained favourable on the pricing front throughout the year, enabling exporters to secure healthy margins. Spot seaborne trades were concluded at around $100-105/t FOB Kandla, which continued to attract strong participation in overseas deals.

Country-wise exports:

• The Philippines was the largest importer of Indian mill scale with 233,000 t in financial year 2026 (FY’26), up by 5% y-o-y against 222,055 t in FY’25. The country continued its strong buying to enhance iron content in raw material blends.
• Malaysia emerged as the second-largest importer, recording a sharp surge of over 200% to 203,500 tonnes in FY’26, compared to 54,000 tonnes in the previous fiscal.
• Vietnam ranked third, importing 196,030 tonnes in FY’’26, reflecting a strong 78% increase from 110,369 tonnes in FY’25.

Top domestic players in Kandla market:

Companion Minerals emerged as the leading buyer in the domestic market in the current fiscal year. KK Enterprises followed, while Gimpex and Welspun also recorded notable activity. Meanwhile, the Singhvi Group reported steady domestic purchases during the same period, highlighting active participation from key players.

Why mill scale exports rose in FY’26

• Demand rises from South East Asia: The rise in India’s mill scale exports in the current fiscal was primarily driven by stronger demand from key Southeast Asian markets such as Vietnam, the Philippines, and Malaysia. This uptick was supported by improved finished steel consumption in these regions, prompting higher raw material requirements, particularly for Fe content enrichment. Additionally, favourable export realizations compared to the domestic market encouraged Indian exporters to tap overseas opportunities, even as global iron ore prices remained relatively subdued, BigMint noted.
• Shift in sourcing to India: Mill scale exports from India rose in the current fiscal largely due to  supply disruptions. This prompted buyers, especially from Southeast Asia, to shift their sourcing to India. Backed by competitive pricing, steady availability, and efficient export logistics, India was able to capitalize on this gap, leading to higher export volumes.

Domestic mill scale market dynamics

Mill scale average prices in Kandla were recorded at INR 7,700/t DAP in this FY’26, surging by INR 700/t y-o-y as compared with CPLY at INR 7,000/t DAP. BigMint recorded around 676,000 t of mill scale domestic deals in the Kandla market in FY’26. Good pricing for mill scale in the region attracted buyers to domestic deals.

Average mill scale prices in Raipur stood at around INR 6,350/t ex-works in FY’26, a decline of INR 500/t y-o-y. Buying activity at higher price levels remained largely subdued, with major buyers staying inactive. Despite this, the entry of new buyers from outside regions offered some support to overall demand.

Traders remained active in the market, primarily supplying to buyers outside the region, although overall sentiment continued to be weak, with a persistent bid-offer gap. However, prices witnessed some support toward the end of the fiscal, driven by improved sentiment in the downstream steel market.

In Jalna, mill scale prices during this period stood at INR 6,285/t exw-Jalna.

Outlook: Mill scale exports from India are expected to maintain a firm upward trajectory in the near term, supported by sustained demand from Southeast Asian markets and continued diversification of sourcing by global buyers. Favourable export realisations, coupled with India’s competitive pricing and strong port logistics particularly at Kandla are likely to keep exporters actively engaged in overseas markets. Additionally, any ongoing supply constraints from competing regions may further support India’s export volumes.