Two Indian Mill Scale Vessels have been rejected by Chinese authorities on quality issues. According to government rules, any parcel of Mill Scale below Fe 68% will not be unloaded at Chinese port. The cargo was heard to have Fe content of 67% and was shipped from India in Jan/Feb 2015, mentioned trade sources.
“ It is very unfortunate on part of Indian exporters. Sellers will have no other option but to call those vessels back to India.” said an Indian exporter
However, Indian sellers blame that sharp fall in sea borne Iron ore prices is the major reason for Chinese buyers defaulting on the cargo. Iron ore prices in Chinese market sank to 10 years low, which was last recorded at USD 47-48/MT CIF China for 62% Fe Iron ore fines
“We had similar issues in 2008, when Iron ore prices fell sharply. Lot of Indian cargoes were rejected by Chinese buyers.” said an Indian Mill Scale and Iron ore exporter.
Indian Mill Scale exports have dried out since Chinese buyers now have the option of buying cheaper Iron ore from Australian and Brazilian miners.India exports around 1 MnT Iron ore annually, with 90% of shipments being made to China.
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