Declining prices in global market has put domestic mill scale prices under pressure. As per SteelMint’s previous report, market participants were expecting price decline in the near term amid sharp decline in spot iron ore prices in China.
Kandla-which accounted for 80% of Indian mill scale exports in FY17 has witnessed steep fall in domestic prices this week. Prices have dropped from last week’s assesment of INR 3,200/MT to INR 2,600/MT delivered Kandla port this week. Thus, down by INR 600/MT W-o-W.
Market participants are anticipating further decline of INR 200-300/MT in the near term.
Spot Iron ore Prices in China down by USD 11/MT, W-o-W
The downward movement in Chinese spot iron ore prices still continues. Yesterday (i.e. 12 Apr’17) prices dropped further by USD 5/MT D-o-D. Fe 62% fines prices are at USD 67.9/MT, CFR China.
Market in China is currently volatile with significant drop seen in billet, rebar and flat steel prices. Iron ore & steel futures have also slumped resulting in decline in prices in physical markets as well.
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