Indian exporters are offering Mill Scale at around USD 128-130/MT CFR China (in bulk). However, buying interest seems to be much lower as compared to offered prices.
Indian Mill Scale exporters have kept their offers in the range of USD 128- 130/MT CFR China in this week; for grade 68/70 Fe in bulk shipment despite low demand from Chinese buyers. However low inventories at ports help Indian exporters to sustain their offers.
Trade sources emphasize that buying interest from Chinese mills & trades have noticed some resistance because of falling spot Iron ore prices and coming Chinese holidays (starting from 1st week of February).
There are offers for 70/68 Fe Mill Scale at around USD 128- 130/MT CFR China; depending on quantity & quality for February/March shipment. Buyers in China have become cautious owing to consistently falling Iron ore prices, said a broker based in New Delhi.
Another Mill Scale exporter based in India’s eastern coast highlighted that with increasing demand of Mill Scale from domestic steel millers, it is now tough to source it for exports. He also mentioned that last deal of around 2,000 MT was closed at around INR 5,950/MT delivered Vizag port.
Mill scale is a by-product generated during re-rolling process and used by Pellet and blast furnaces because of high iron content. Indian exports of Mill Scale have gone up recently as it does not attract any export duty or differential freight charge by railways, unlike Iron ore.
Trade Wise
- Indian exporters offering Mill Scale of grade 68/70 Fe at around USD 128-130/MT CFR China.
- In domestic market Mill Scale prices are hovering in the range of INR 5,900-6,000/MT delivered Vizag port.
- Iron ore fines of grade 60 Fe (rej) offered at INR 3,600/MT delivered Vizag port.
- Iron Ore fines of grade 55 Fe hovering at INR 2,700-2,800/MT delivered Vizag port.
- Odisha miners offering 63 Fe Iron fines at INR 2,200/MT Ex Mines (Incld Royalty).
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