SteelMint: Rourkela sponge iron index rises further on active trading - 6 Dec

SteelMint's daily sponge iron, CDRI index rose further to INR 31,300/tonne (t) (+ INR 300) exw-Rourkela on 6 December, 2022.

About 9,420 t of transactions were recorded today as against 5,190 t on 5 December.

The index increased as a result of strong demand and suppliers' higher volumes on offer. Multiple trades took place today in response to the increase in Rourkela's billet prices by INR 450/t d-o-d. Consequently, manufacturers kept prices on the higher side. As buyers took positions in response to this favourable shift, trade volumes increased resultantly.

Sources are expecting sponge iron prices to remain strong as major deals are happening.

About 1,500 t of sponge iron PDRI (FeM 77-79%) trade were recorded from Odisha today as against 3,100 t yesterday. Deals were concluded on DAP Raipur basis.

Deals

• Market participants from Patna booked a sizeable quantity of material as demand in finished steel has improved a bit.
  
  
• Buyers from Maharashtra booked premium grade (FeM 80-82%) sponge iron from Odisha at INR 33,000/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) - Fifteen 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 31,259/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 31,319/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 31,289/t, rounded to INR 31,300/t exw.

Click for detailed methodology

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