India: Mill scale prices decline, marginal correction witnessed in Raipur and Jalna

• Market under pressure as buyers remain cautious
  
  
• Kandla offers weaken on limited export inquiries
  
  

Mill scale prices across major domestic markets largely trended downward as of 10 June 2026, pressured by weak buying interest, declining export viability, and softer global iron ore sentiments.

According to BigMint's latest assessment, Fe 69% mill scale prices in Kandla witnessed the sharpest correction, falling by INR 550/t ($6/t) to INR 8,050/t ($84/t) DAP compared with 6 June. In Raipur, prices eased by INR 50/t ($0.5/t) to INR 7,000/t ($73/t) ex-works over the same period, while Jalna prices also declined by INR 50/t ($0.5/t) to INR 6,500/t ($68/t) ex-works against the assessment on 3 June.

Kandla prices slide on weak export demand

Kandla market witnessed a sharp downturn as buying interest from exporters remained subdued. The correction followed the recent decline in the global Fe 61% iron ore fines index, prompting exporters to lower procurement bids and reassess inventory positions.

Iron ore fines (Fe 61%) spot prices dropped by $4/dmt w-o-w to $101/dmt CFR China on 9 June. The market saw a mild technical rebound after prices had fallen to a more than three-month low, supported by the absence of fresh developments.

Market participants noted that weak export realisations and limited vessel availability have further dampened trading sentiment.

According to market sources, exporters are currently carrying comfortable inventory levels, reducing the urgency for fresh purchases. As a result, material that would typically move into export channels is increasingly expected to be absorbed by domestic consumers in the coming weeks.

A market participant stated, "Buyer inquiries in the export market is tight at present, while exporters are holding sufficient inventories. This has led to sharp drop in domestic bids."

Another trader observed that although bids have been revised downward, prevailing market expectations among sellers continue to remain above INR 8,400/t DAP. Trading activity remained limited during the assessment period, with logistical challenges and freight-related issues restricting movement from neighboring markets into Gandhidham. No major transactions were reported during the publishing window.

Raipur market under pressure from cautious buying

In Raipur, mill scale prices continued to soften as deals were concluded at lower levels amid cautious buying activity and moderate demand from end-users. Market participants reported that several suppliers struggled to conclude sales despite reducing offer prices, reflecting weak procurement appetite and sufficient material availability in the market.

The absence of bulk buying activity further weighed on sentiment, keeping market liquidity subdued throughout the week. During the assessment period, approximately 1,800 t of mill scale were traded in the range of INR 7,000-7,300/t ($73-77/t) ex-works.

Jalna remains relatively resilient despite soft sentiment

Jalna prices registered a marginal decline, although the market remained relatively stable compared with other regions. Participants noted that local demand and a slight recovery in downstream steel prices provided some support, preventing a steeper correction despite weakness in Kandla.

Offers for Fe 69% mill scale were largely reported at INR 6,400-6,600/t exw. Trading activity remained moderate and was primarily driven by local dispatches, while the arbitrage opportunity for material movement from Jalna to Kandla has largely disappeared following the sharp correction in the western market.

Market participants continue to expect some bulk procurement activity ahead of the monsoon season, which has helped maintain a degree of market engagement. During the assessment period, around 2,500 t of mill scale were transacted at approximately INR 6,500/t ($68/t) ex-works.