SteelMint: Rourkela sponge iron index inches up on bullish trends - 9 Dec

SteelMint's daily sponge iron, CDRI index was assessed at INR 32,000/tonne (t) (+ INR 100) exw-Rourkela on 9 December, 2022.

About 2,500 t of transactions were recorded today as against 2,100 t on 8 December.

The index rose due to optimism and bullish trends in the market. Producers kept prices strong as moderate deals took place, triggering the rise in prices today, sources informed SteelMint. Spot trades were up by around 19% as compared to yesterday.

About 600 t of sponge iron PDRI (FeM 77-78%) trade was recorded from Odisha today as against 1,100 t yesterday. Deals were concluded on DAP Raipur basis.

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) - Ten trades in the range of INR 31,800-32,200/t was 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 31,988/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 32,040/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 32,014/t, rounded to INR 32,000/t exw.

Click for detailed methodology

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