Indian Mill Scale Prices Stable; Export Volume reduces

Indian Mill scale prices remained stable this week, with most of the sellers are not willing to sell their stock at prices lower than current levels. Current prices for Fe 70/68% Mill scale are assessed at INR 2,400-2,500/MT (ex-Raipur) and INR 2,500/MT (ex-Kandla).

Declining Iron ore prices in Chinese market has severely dented Mill scale exports from India as both the commodities are co-related. Indian export is expected to fall over 50-60% in FY15.

Indian exporters highlighted that exports are not viable at these prices as domestic realizations are better.

“There is no parity in export owing to falling Iron ore prices. Current prices for bulk shipments are around USD 55-60/MT, CIF China for 70/68%. Sellers prefer to sell in domestic market than going for exports,” said an exporter based in Western India.

Some trades are heard to be concluded at INR 2,400-2,500/MT (ex-Raipur) and INR 3,200-3,300/MT (delivered to Vizag Port).

Mill Scale Prices as on 30 Mar’15

Source: SteelMint Research