- Kandla market faces pressure from weak exports
- Buying remains cautious in Raipur amid monsoon
Mill scale prices across major Indian markets remained largely firm during the assessment week ended 12 August, although demand trends in regional markets remained mixed. BigMint’s Fe 69% mill scale assessment on 12 August was unchanged at INR 7,500/t ($79/t) DAP Kandla from 8 August, while Jalna prices increased by INR 50/t to INR 6,450/t ($68/t) ex-works from 5 August. Raipur prices also held steady at INR 7,200/t ($76/t) ex-works from 8 August. While weak export demand and monsoon-related disruptions limited fresh buying in some markets, bulk procurement and steady trader activity provided support in others.
Kandla faces export pressure
The Kandla market remained under pressure as exporters reduced fresh offers to INR 7,300-7,500/t DAP amid weak export sentiment and subdued buying interest. However, previously booked cargoes at higher levels of INR 7,500-7,700/t continued to be lifted.
Around 3,500 t of mill scale were traded at INR 7,450-7,500/t DAP Kandla during the assessment window. Comfortable inventory levels among exporters and weakness in international iron ore indices continued to weigh on sentiment, delaying fresh export commitments and vessel finalisation.
Raipur market remains mixed
Raipur prices remained stable, although market activity showed a wide spread between seller offers and concluded deals. Some sellers continued to hold higher offers, while others were willing to transact at lower levels to secure volumes.
Around 5,000 t of mill scale were traded at INR 6,900-7,500/t ex-works Raipur. Procurement by outside buyers remained subdued due to monsoon-related concerns, although some fresh purchase orders provided limited support. Traders remained active in procurement, while elevated moisture content of around 9-10%, against the preferred level of around 4%, continued to affect buying decisions and material realisations.
Jalna sees fresh procurement
Jalna recorded comparatively better buying activity, with multiple bulk purchase orders reported during the assessment period, particularly from buyers in Wardha and Bhandara. Mills offered material at around INR 6,300-6,500/t ex-works Jalna, while fresh orders were heard at around INR 7,100/t FOR Wardha.
Around 7,100 t was reportedly traded during the assessment window at INR 6,500-6,800/t ex-works. Despite the improvement in procurement, overall sentiment remained cautious as finished steel demand stayed subdued. Buyers are continuing to secure material against confirmed requirements rather than building large inventories.
Leave a Reply