iron ore e-auction

India was the world’s 3rd largest exporter of Iron ore until mining ban imposed by the Supreme Court in states of Karnataka & Goa hit the industry hard. A sharp fall in exports was noted when it touched 18 MnT in FY13, from 117 MnT in FY10.

For last 2.5 years, India’s mining industry is battling with low Iron ore production. The recovery in production level is slow. Hence, with lower Iron ore exports, Mill Scale has drawn attention of Indian Iron ore exporters and has advantages over the former.

What is Mill Scale?

Mill Scale is a waste generated during re-rolling of semi finished products such as Ingot & Billet to finished steel product in rolling mills. It is in the form of fines and has high density. Fe content varies from 68-70%. It is collected and sent to Sinter plant for re-cycling. It is used by Blast furnace operators (for Pig iron) and Iron Pellet manufacturers in order to increase the FeO (Ferrous Oxide) content in further process.

Mill Scale is preferred as an exportable material and is free from duties and charges such as export duty & distance based charge (DBC). Whereas, Iron ore export draws 30% duty and higher freight charges. Mill Scale is counted as a high grade finished material, is an excisable product and not a mineral.

iron

Mill Scale Specification

Mill Scale

Basic/Minimum

Fe

70%/68%

SiO2+CaO

3%

Al2O3

1.50%

P

0.08%

S

0.08%

Moisture

8%

-0.15
mm

40%

+10 mm

10%

Export of Mill Scale from India

In last 3 years, Mill Scale exports have increased by over 71% to 1.2 MnT in FY13. About 1 MnT Mill Scale is exported by small & medium-sized Indian steel companies every year, mainly to China in bulk. The main export ports are Vizag, Kandla, Kakinada, Chennai & Haldia.

Drawbacks

Being an excisable item, documentation becomes lengthy. Also, procurement becomes difficult as it is available in small quantities with no single sourcing point for bulk quantity.