With falling spot Iron ore prices in Chinese market, Indian Mill Scale exporters were forced to reduce their offers. Recently, it is heard that an Indian exporter has sold a bulk cargo of 32,000 MT to a Chinese trader at around USD 83/DMT FOB Kandla port and freight was assessed at around USD 14-15/MT.
Trade participants reported that last week offers were at around USD 101-102/MT CFR China (in bulk) since spot Iron ore prices have corrected by USD 3-4/MT last week. It is anticipated that Indian exporters will have no other option but to correct their prices.
Participants also mentioned that with better realizations in the domestic market, Re-bar manufacturers are more inclined to sell the material to domestic buyers.
Mill Scale in the domestic market is assessed at around INR 4,000- 4,100/MT delivered to Kandla port and INR 4,200-4,400/MT delivered to Vizag port.
Chinese Spot Iron Ore Fines Prices fall below USD 90/MT CFR
Falling steel prices in China have put pressure on spot Iron ore prices as it falls below USD 90/MT CFR.
A cargo of Australian PB Fines for 62% Fe traded at USD 90/MT for September delivery on globalORE exchange.
Mill Scale is a byproduct generated during re-rolling process. It does not attract any export duty of differential freight rates like Iron ore.
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