SteelMint: Rourkela sponge iron index moves up further on rising steel prices - 30 Nov

SteelMint's daily sponge iron CDRI index was assessed at INR 31,350/tonne (t) (+ INR 450) exw-Rourkela on 30 November 2022.

About 4,050 t of transactions were recorded today as against 3,250 t on 29 November.

The index rose on the back of a rally in steel prices, active demand and higher offers floated by suppliers. Producers kept prices on the higher side as several deals took place today following the rise in billets prices by INR 1,200/t, d-o-d in Rourkela.

Looking at this positive turn, buyers have started taking positions which led to the rise in trade volumes.

About 1,150 t of sponge iron PDRI (FeM 77-79%) trade was recorded from Odisha today as against 1,700 t yesterday. Deals were concluded on DAP Raipur and Durgapur basis.

Trade dynamics

• Participants from Bihar were active and procured sizeable quantities of material.
  
  

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) - Eleven trades in the range of INR 31,200-31,700/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 31,327/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 31,394/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 31,361/t, rounded to INR 31,350/t exw.

Click for detailed methodology

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