SteelMint: Rourkela sponge iron index climbs on rising steel prices - 8 Oct

SteelMint's daily sponge iron, CDRI, index is assessed at INR 34,200/tonne (t) (+ INR 100) exw-Rourkela on 8 October, 2022.

About 2,100 t of transactions were recorded today as against 5,100 t on 7 October.

Prices increased as a result of a rise in steel prices in the northern region, particularly Punjab. Sponge iron prices were firmer as a result of the increase in billet prices. Billet prices in Rourkela increased by INR 300/t d-o-d.

Spot trades were modest, however, as there was little buying interest among participants. Buyers chose to hold back from placing bids because they had already secured orders during the previous couple of days.

About 600 t of sponge PDRI (FeM 77-78%) trades in Odisha were recorded today as against 3,800 t yesterday. The deals were concluded on DAP Raipur basis.

Trade dynamics

• Patna-based buyers had sufficient orders in hand and hence booked material only as per immediate requirement.
  
  

Rationale -

This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.

• Transactions (T1) - Six trades in the range of INR 34,000-34,200/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 34,164/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 34,205/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,185/t, rounded to INR 34,200/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology