Indian Mill Scale prices, which continued to move down owing to falling Iron ore prices in spot market, seem to find some support. Last trade of Fe 70/68% was heard to be settled at INR 4,200/MT delivered Kandla port, which is in line with export parity prices.
Although, Mill Scale offers in Chhattisgarh, which is one of the major suppliers in India, is still holding firm owing to domestic demand from Pellet manufacturers. Current offers are in the range of INR 3,500-4,000/MT (Ex- Raipur).
Speaking to Mill Scale traders, it was noticed that exports are taking place from Indian West Coast, whereas no exports are viable from Indian East Coast.
Spot Iron ore prices have fallen to 3 years low to USD 89/MT CFR China for Fe 62%.
Mill Scale is a by-product generated during re-rolling process and generally used by Pellet manufacturers and Blast Furnace operators. Indian Mill Scale export has increased recently, as it is duty free and without differential freight charges, unlike Iron ore.
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