Indian Mill Scale prices, which continued to move down owing to falling Iron ore prices in Chinese spot market, has found some support.
Last deal of 13,000 MT of 70/68% Fe was heard to be settled at USD 84-86/DMT FOB Chennai port by Gimpex, a government recognized trading house in the month of July, 2014.
Market participants mentioned that there are not many offers from Indian exporters on two prime reasons; one is the rising domestic demand and second, falling prices in Chinese spot market.
Speaking to Mill Scale traders, it was noticed that few trades are taking place from Indian West Coast, whereas no exports are viable from Indian East Coast.
Spot Iron ore prices have recovered from 3 years low. Currently, it is at about USD 95-96/MT CFR China for Fe 62%.
Mill Scale is a by-product generated during re-rolling process and generally used by Pellet manufacturers and Blast Furnace operators. Indian Mill Scale export has increased recently, as it is duty free and without differential freight charges, unlike Iron ore.
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