India: Mill scale exports surge 20% y-o-y in FY'24
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India's mill scale exports were recorded at 596,450 tonnes (t) in fiscal year 2024. Exports increased by 20% y-o-y against 496,400 t in the previous fiscal year 2023, as per BigMint data. However, on monthly basis mill scale export was down by around 14% to 57,000 t in March, 2024 against 66,000 t in February, 2024.
Country-wise contribution on mill scale export:
- The Philippines was the largest importer of Indian mill scale with 175,400 t in financial year 2024 (FY'2024), up by 45% y-o-y against 120,600 t in FY'2023.
- Indonesia emerged as the second largest mill scale importer with 159,223 t in FY'2024, a significant rise was seen against 55,000 t in FY'2023.
- Vietnam imported 142,997 t mill scale from India in FY'2024, recording a minimal rise against 133,300 t in FY'2023.
Notably, other major importer was Malaysia recorded 118,830 t in FY'2024.
Why mill scale export surged in FY'24?
- Decent demand in the Philippines: Spike in demand from the Philippines and Indonesia witnessed these countries procuring mill scale for upgrade the Fe content of the material, BigMint noted.
- Supportive global iron ore prices: Yearly average of Fe 62% global benchmark index was recorded at $120/t CFR China in FY24 versus $117/t CFR China in FY23.
- Rise in India's crude steel production: India's crude steel production increased by around 13% to 143 million tonnes (mnt) in FY'24 from 127 mnt seen in the previous fiscal (FY'23). Increase in crude steel production have resulted in higher mill scale output in the country.
Domestic mill scale price trend: Mill scale average prices in Kandla were recorded at INR 7,357/t DAP in FY'2024, up by INR 900/t y-o-y as compared with FY'23. Notably, higher export volumes were recorded from Kandla port. In FY'24, out of the total export volumes of 596,450 t, Kandla port contributed around 525,450 t, whereas rest volumes of 71,000 t was exported from Chennai port.
Outlook: Mill scale export volumes from India are expected to maintain momentum in the current year as well. However, few export deals were also heard which is under negotiation.
