Mill Scale, an exportable and superior quality (Fe 68-70%) finished material with high density. Out of total Re-bar production, Mill Scale generation is almost 1.5-2%.
In Apr’14-Aug’14, 0.2 MnT (2,00,000 MT) Mill Scale has been exported to China and Philippines from Kandla, Mundra and Chennai port. And, 1.08 MnT (1,08,000 MT) Mill Scale was exported from various ports such as Vizag, Kandla, Kolkata, Chennai and JNPT in FY14.
Independent Mineral and Kineta Global based in Hyderabad (Andhra Pradesh) are exporting 34,000 MT Mill Scale from Tamil Nadu’s Kakinada (14,500 MT) and Chennai port (19,500 MT).
Deal has heard to be closed at around USD 74-75/MT FOB basis.
Vessel named Great Royal is at anchorage at Kakinada since 18 Sep, 2014. And, the vessel is expected to arrive at Chennai port today. It is the 2nd shipment to China this month. Steel mills in China use Mill Scale in Sinter plants for recycling.
Spot Iron ore fines (Fe 62%) prices stepped down below USD 80/MT CFR last day. The regular price fall has pushed Mill Scale exporters to clear stockpile ahead of further decline. Mill Scale prices are directly impacted by any alteration in Chinese fines prices.
Mill Scale prices are prevailing in the range of USD 80-82/MT FoB (INR 4,800-4,920/MT) Indian port and USD 95-97/MT (INR 5,700-5,820/MT) CNF China; locating buyers at these rates is tough. Prices have increased by INR 200-300/MT and are at around INR 3,600/MT (USD 60/MT) ex-plant Raipur (Chhattisgarh) owing to expensive Iron ore and its scarcity in the domestic market. Exporters are reluctant to source the material, being offered at nearly INR 3,100-3,200/MT (USD 52-53/MT) delivered to Kandla.
Space Exim located in the northwest i.e. Gandhidham in Gujarat, had exported dry bulk (DB) 27,000 MT Mill Scale from Kandla port. Vessel name Propel Progress was shipped on 19 Sep, 2014 for Chinese Nantong port in Jiangsu.
On 16 Sep, 2014 ,the deal was concluded at USD 88/MT FoB (INR 5,280/MT) with a UAE based trader named Al Kahf Metal ; freight rate was USD 12/MT.
This solid waste pollutant is generated in rolling mills. It is difficult for traders & exporters to get Mill Scale in bulk quantity because it is available in small amount with several small and medium steel mills.
Mill Scale is exempted from export duty and differential based charges (DBC), attracting exporters but documentation becomes lengthy as it is excisable.
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