Indian Exporters seek Mill Scale at INR 5,300/MT at Kandla Port

Indian Mill Scale exporters increased purchase prices in domestic market by INR 200-300/MT

Indian exporters are seeking Mill Scale at around INR 5,300-5,350/MT (basic prices) delivered Kandla Port, up by INR 200-300/MT in last few days . Prices have gone up slightly owing to recovery in Chinese Spot market. In Chinese market, Mill Scale prices are at USD 122-124/MT CFR China (in bulk). However, some Indian exporters claim to have sold few cargoes of Fe 71% at a level of USD 130-132/MT CFR to Japanese steel mills from Chennai port.

Indian exports of Mill Scale stood at 1,30,000 MT in the month March, 2014 out of which, 46,000 MT was shipped from Kandla port followed by Chennai, Vizag  and Haldia port.

An Indian exporter reported to have bought 3,000 MT at INR 5,750-5,800/MT delivered Vizag port. It may be noted that Vessel Freight and Port Handling Charges are lower as compared to Kandla port.

Mill Scale is a by-product generated during re-rolling process and generally used by Pellet manufacturers and Blast Furnace operators. Indian Mill Scale export has increased recently, as it is duty free and without Differential Freight Charges, unlike Iron ore.