SteelMint: Rourkela sponge iron index rises as spot trade improves - 14 Sep

SteelMint's daily sponge iron, CDRI index was assessed at INR 34,750/tonne (t) (+ INR 100) exw-Rourkela on 14 September, 2022.

About 4,120 t of transactions were recorded today as against 3,715 t on 13 September.

Market optimism contributed to the index's increase. Sources told SteelMint that producers continued to keep prices firm. In comparison to yesterday, there was a noticeable improvement in spot trade today. Several deals for Patna were concluded.

Today's rising steel prices in the Punjab market prompted manufacturers to float offers at higher levels which resulted in a surge in purchase enquiries.

Trade dynamics

• Approximately 43% of the total quantity reported today was booked by buyers from Patna.
  
  
• Participants from Jalna received offers for premium grade sponge iron (FeM 81-82%) at INR 36,200/t exw-Rourkela.
  
  

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 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 34,724/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 34,736/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,730/t, rounded to INR 34,750/t exw.

Click for detailed methodology

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