Mill scale (Fe 68/70%) prices have witnessed a fall of INR 100-200/MT in the domestic market. With global buyers uninterested to procure Mill scale, Indian sellers have an only option to look for the domestic buyers.
Mill scale offers in Raipur, one of the largest Mill scale generating region in India, are in the range of INR 2,800-3,000/MT ex-plant. Whereas, buyers are ready to place bookings at INR 100-200/MT lower to this.
Few deals were heard to have settled at INR 2,500-2,600/MT delivered to Kandla Port. While, prices in Vizag & Chennai are INR 3,700/MT (ex-plant) and INR 2,800-3,000/MT (delivered) respectively to domestic Pig iron & Pellet manufacturers.
Buyers have enough stock for the next few weeks and have therefore cut down their purchases. Finished steel production & consumption has not picked up well in order to support Mill scale generation. In addition, export market is not promising.
Falling Global Prices worry Exporters
Indian Mill scale exporters are holding stock at ports and are worried over falling Iron ore prices in the global market.
“There is hardly any viability in the export market. With Iron ore prices falling to more than 5 years low in China, demand for Mill scale has weakened and prices should be around USD 72/MT, CFR China for bulk shipments and nearly USD 58/MT, CFR China for containerized shipments” , said an exporter.
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