Rise in spot Iron ore prices due to some hope of recovery in Chinese economy has supported offers of Mill Scale from Indian exporters. Spot Iron ore rose sharply by almost USD 3-4/MT on Monday afternoon. Australian PB fines was traded at over USD 115/MT and Australian 62% was offered above USD 117/MT CFR China. Brazilian 65% fines sold at USD 125/MT CFR China.
On the same line, Indian exporters have raised their Mill Scale offers to USD 120-122/MT CFR China (in Bulk), which was at around USD 115/MT CFR last week.
In Indian domestic market, last deal of 1,000 MT Mill Scale of grade 70/68 was heard settled at INR 5,400/MT delivered Vizag port. Looking at such sharp rise, market is anticipating of price hike in the domestic market as well.
“Current offers are at above at USD 120/MT CFR China, however looking at momentum in the market, we will wait & watch”, said a Mill Scale exporter based in Eastern India.
Mill scale is a by-product generated during re-rolling process and generally used by the Pellet manufacturers and Blast furnace operators. Indian mill scale exports increased recently as there is no export duty or differential freight charge on it, unlike Iron ore.
India had exported around 1.2 MnT Mill Scale during FY13, in which most of the shipments were made from Kandla followed by Vizag.
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