- Weak iron ore fines prices pressure export sentiment
- Rainfall disrupts logistics, limits procurement
Mill scale prices across major domestic markets displayed mixed trends during the assessment period ending 29 July, reflecting contrasting regional demand fundamentals. According to BigMint’s assessment, Fe 69% mill scale prices in Kandla declined by INR 100/t ($1/t) to INR 7,600/t ($79/t) DAP from 25 July, pressured by weak export demand and lower buyer bids. Jalna prices fell by INR 50/t ($0.5/t) to INR 6,350/t ($66/t) ex-works compared with 22 July amid sluggish buying activity. In contrast, Raipur prices increased by INR 50/t to INR 7,100/t ($74/t) ex-works, supported by steady domestic procurement despite weather-related challenges.
Kandla: Weak export demand pressures prices
Mill scale prices in Kandla remained under pressure as export demand continued to weaken. Exporters maintained ample inventories and remained reluctant to replenish stocks aggressively amid declining overseas realisations. Sellers indicated that buyers’ bid levels remained below market expectations despite exporters reducing offers by around INR 200-300/t ($2-3/t) w-o-w, with current tradable levels heard at INR 7,400-7,700/t ($77-80/t) DAP.
The continued softness in global iron ore fines prices weighed on export sentiment, prompting traders to postpone fresh vessel bookings while awaiting improved overseas demand. Market participants noted that buying interest from domestic consumers could emerge if prices fall below INR 7,500/t ($78/t), enabling bulk procurement and faster inventory liquidation. Around 3,000 t of deals were recorded during the assessment window within the INR 7,400-7,700/t ($77-80/t) range.
Raipur: Need-based buying supports market
Mill scale prices in Raipur strengthened marginally as domestic buyers re-entered the market to fulfil committed deliveries, supporting procurement despite the ongoing monsoon season. Trading activity remained balanced, with transactions taking place at both lower and higher price levels depending on material quality and immediate requirements.
However, overall buying remained selective as several consumers continued to avoid bulk purchases due to elevated moisture content during the rainy season. At the same time, some traders remained active in collecting material in anticipation of future demand. Market prices were largely heard in the INR 6,800-7,300/t ($71-76/t) range, with approximately 2,700 t of transactions concluded between INR 6,800-7,200/t ($71-75/t) during the assessment period.
Jalna: Slower buying keeps prices under pressure
Mill scale prices in Jalna softened as procurement activity slowed despite a brief improvement in semi-finished and finished steel prices. Market participants noted that the uptick in steel prices failed to generate sustained buying interest, limiting any meaningful support for mill scale values.
Monsoon-related disruptions also slowed dispatches and production, resulting in predominantly need-based purchases. Around 4,000 t of deals were concluded during the assessment period in the INR 6,350-6,400/t ($66-67/t) ex-works range.
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