Chinese buyers continue to keep their purchases low for Mill Scale owing to falling Iron ore prices.
With Chinese market re-opening after New Year holidays, buying interest still remains low for Iron ore and Mill Scale.
Today, Fe 63.5 offers remain unchanged at USD 121/MT CFR China and Fe 61. 5 PB fines stay at USD 120/MT CFR China. Square billet fall further by RMB 20/MT to RMB 2,770/MT (USD 1= RMB 6.1069).
Trade sources emphasize that buying interest from Chinese mills & trades have noticed some resistance because of falling spot Iron ore prices and sufficient stock at Chinese ports.
[su_quote]Sources also mentioned, “Since Chinese buyers have just returned back to the market, we have to wait & watch at what levels buying interest is generated.”[/su_quote]
An exporter based in Eastern India reported that Mill Scale stocks at Indian ports are very limited, not many exporters are offering cargo at the moment.
[su_quote]Another Mill Scale exporter based in India’s eastern coast highlighted, “With increasing demand of Mill Scale from domestic Steel mills, it is now tough to source it for exports.”[/su_quote]
According to sources, Indian Mill Scale exporters are trying to sell cargo in the range of USD 127-128/MT CFR China; for Fe 68/70 Fe in bulk. However, buying is expected to take place at around USD 122-123/MT CFR China.
Exporters also mentioned that last deal of around 2,000 MT of Iron ore fines was closed at around INR 5,900-6,000/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 increased recently as there is no export duty or differential freight charge on it, unlike Iron ore.
Trade Wise
Indian Fe 54 Fines at around USD 84-85/MT CFR China
Indian exporters seek Mill Scale at INR 5,900/MT delivered Vizag Port
Trade of 500 MT Mill Scale was heard concluded at INR 5,750/MT delivered Kandla Port
Exports
Today at Vizag port, a vessel of Medi Lauusanne is being loaded with 70,000 MT Iron ore by MMTC. Aloha Minerals is also loading 38,000 MT of Iron ore in vessel Grand Royal.
Leave a Reply