Indian mill scale exporters have turned active after quite some time. Prices have increased to INR 2,600-2,700/MT delivered Kandla port, which was earlier trading at INR 2,500/MT delivered Kandla port.
Indian mill scale exports to China have weakened after Chinese govt. notified World Trade Organization (WTO) on 18 Jul’17 on initiative to ban imports of solid waste by year end, which includes mill scale also. On 15 Nov’17, China officially notified World Trade Organization (WTO) of its intent to adopt a number of environmental protection control standards for imported solid wastes as raw materials.
The applicable thresholds communicated at 0.5% for ferrous scrap imports to China and 1% for non-ferrous scrap. The Chinese WTO notifications proposed the date of adoption as 31 Dec’17 and the entry into force on 1 Mar’18.
SteelMint learned that Indian mill scale exporters are still lacking clarity over the notification issued by the Chinese government. And they expect things to be clear in Jan’18 after renewal of licenses are completed. Following this Indian mill scale exporters have started exploring other markets like Philippines, Malaysia, South Korea and Japan.
“Merchant exporters like Swiss Singapore, BGH Exim and KK Resources have started stocking mill scale at Kandla port in last few days.” said a local trader based in Kandla.
Indian mill scale exports during FY18
So far in FY18 (till Nov’17), Indian mill scale exports have summed up to 168,500 MT. Out of this, China accounted for share of 51% followed by Malaysia at 19% and other countries.
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