SteelMint: Rourkela sponge iron index remains stable, trades improve - 9 Sep

SteelMint's daily sponge iron, CDRI, index was assessed at INR 34,600/tonne (t) (=) exw-Rourkela on 9 September, 2022.

About 3,150 t of transactions were recorded today as against 1,700 t on 8 September.

Suppliers were urged to maintain stable prices following a considerable rise in offers in Punjab, north India, as the index continued to be largely supported by strong buying activity. SteelMint learned from sources that spot trading increased by 85% d-o-d, which is a considerable increase.

Trade dynamics

• On quoted offers, Patna buyers showed a moderate buying interest, which increased the amount of spot trade.
  
  

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 34,500-34,900/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 34,598/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 34,585/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,592/t, rounded to INR 34,600/t exw.

Click for detailed methodology

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