SteelMint: Rourkela sponge iron index edges up on rising steel prices - 30 Sep

SteelMint's daily sponge iron, CDRI, index was assessed at INR 34,000/tonne (t) (+ INR 200) exw-Rourkela on 30 September, 2022.

About 5,400 t of transactions were recorded today as against 2,460 t on 29 September.

Prices increased as buying conditions improved due to an increase in steel prices in the northern region, particularly Punjab. Buyers began to take positions after taking different concerns into account. Gains in spot trade volumes followed as a result.

As multiple transactions occurred today in response to a minor increase in billet prices to the tune of INR 100/t, d-o-d, producers maintained stable prices.

About 600 t of sponge PDRI (FeM 77-79) trades were recorded today as against 3,200 t yesterday from Odisha. The deals were concluded on DAP-Raipur basis. PDRI spot trades were comparatively low as buyers had placed sufficient orders yesterday.

Trade dynamics

• Premium grade sponge iron (FeM 81-82%) was sold to Jalna-based buyers at INR 34,600/t exw Rourkela.
  
  
• Participation from Patna-based buyers remained active and bookings were made accordingly.
  
  

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) - Nine trades in the range of INR 33,800-34,150/t were recorded during the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 34,020/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 34,024/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,022/t, rounded to INR 34,000/t exw.

Click for detailed methodology

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