India: Mill scale prices decline in Kandla, Jalna but remain stable in Raipur

• Higher moisture content slows trading activity in Raipur
• Rising inventories prevent price upside in Kandla

Mill scale prices across major Indian markets showed divergent trends during the week ended 26 August, with market conditions varying across regions amid mixed buying interest, monsoon-related disruptions, and changing trade economics. BigMint’s Fe 69% mill scale assessment at Kandla declined by INR 50/t w-o-w to INR 7,100/t DAP Kandla, while Jalna prices fell by INR 50/t to INR 6,400/t ex-works. In contrast, Raipur prices remained stable at INR 7,200/t ex-works. While weaker export demand and high moisture content weighed on buying in some markets, healthy bulk procurement and steady dispatch activity provided support elsewhere.

Lower exporter offers support healthy Kandla trade activity

The Kandla market remained relatively active despite a decline in assessed prices, with offers falling to around INR 7,000-7,100/t DAP Kandla. Deals for around 8,600 t were recorded during the publishing window at INR 7,050-7,200/t DAP Kandla, indicating healthy transactional activity. However, no significant vessel completion was heard, while rising exporter inventories continued to weigh on market sentiment. Despite this, traders believe prices have reached a near-term floor, limiting expectations of further significant downside. Buying interest was also reported for lower-grade material, with levels of around INR 6,800-6,900/t heard for material below 69% Fe. Meanwhile, some bulk deals for screened material were reported at around INR 7,300/t DAP Kandla, highlighting continued interest from buyers for suitable-quality material.

Raipur mill scale prices remain stable amid weak fresh buying

Raipur mill scale prices remained unchanged, although market sentiment was mixed. Sellers continued to quote higher offers amid elevated replacement costs, while buyers remained reluctant to accept the increased levels. This has squeezed trader margins, as purchasing material at higher prices and reselling at prevailing buyer levels has become increasingly difficult, resulting in limited fresh procurement. Monsoon conditions have further slowed market activity, with higher moisture content affecting material handling, dispatches, and buyer interest. A Raipur-based trader told BigMint that previously booked orders were still awaiting dispatch due to the higher purchase prices, preventing the trader from taking fresh positions. Around 1,000 t of deals were recorded during the publishing window at INR 7,100-7,400/t ex-works Raipur.

Existing orders, regional demand support Jalna mill scale activity

The Jalna market remained comparatively active, although prices eased marginally. Most mills kept their offers broadly unchanged, while traders continued dispatching previously booked material to destinations such as Bhandara and Wardha. Some fresh bookings for Kandla were also reported; however, elevated freight costs have reduced the economic viability of moving material from Jalna to the western coast. Despite this constraint, steady dispatches and continued buying interest supported trading activity. Around 800 t of deals were recorded during the publishing window at INR 7,400-7,450/t ex-works Jalna.