SteelMint: Rourkela sponge iron index falls further on dull enquiries - 29 Sep

SteelMint's daily sponge iron, CDRI, index was assessed at INR 33,800/tonne (t) (- INR 100) exw-Rourkela on 29 September, 2022.

About 2,460 t of transactions were recorded today as against 2,400 t on 28 September.

Even as the index fell trades improved slightly, although remaining less than average which resulted in the softening of offers.

There was lack of confidence among market participants as regards price movements resulting in limited enquiries. Spot trades continued to remain somewhat limited. Buyers booked material as per immediate requirements, while price volatility continued its sway over the market.

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

Trade dynamics

• Patna-based buyers showed little procurement interest. They are possibly waiting for a clearer price picture to emerge.
  
  

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) - Seven trades in the range of INR 33,700-34,000/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 33,770/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 33,875/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 33,823/t, rounded to INR 33,800/t exw.

Click for detailed methodology

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