Indian Mill Scale prices strengthened this week owing to improving market and rising demand from Chinese buyers. Indian exporters have paced-up their purchases from local market. According to trade sources, last offers of Mill Scale, which stands at INR 5,600/MT have gone up to INR 5,800/MT, delivered Vizag port.
Speaking to traders and exporters, SteelMint assessed that buying interest is high as exporters want to stock and capitalize during Indian monsoon, which generally starts in June.
A Mill Scale exporter based in western India mentioned that some deals were closed at around INR 5,300-5,400/MT, delivered Kandla port.
Current prices in global market are at USD 122-124/MT CFR China (in bulk) but Indian offers are higher as participants anticipate that prices to go up further.
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.
India had exported around 1.2 MnT Mill Scale during FY13, in which most of the shipments were made from Kandla followed by Vizag.
Leave a Reply