SteelMint: Rourkela sponge iron index rises on higher offers - 8 Dec

SteelMint's daily sponge iron, CDRI index was assessed at INR 31,900/tonne (t) (+ INR 200) exw-Rourkela on 8 December, 2022.

About 2,100 t of transactions were recorded today as against 4,250 t on 7 December.

The index rose as producers kept their offers on the higher side. Prices are rising amid the current strong market sentiments. However, because buyers had placed sufficient orders over the last few days, demand today was only moderate. Spot trades fell by over 50% today, SteelMint learnt.

Market participants feel the domestic market will likely continue to support the sponge iron prices in light of these reasons.

About 1,100 t of sponge iron PDRI (FeM 77-79%) trade was recorded from Odisha today as against 2,300 t yesterday. Deals were concluded on DAP Raipur basis.

Patna-based buyers already placed adequate amount of material and, hence, booked as per necessity.

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) - Eight trades in the range of INR 31,800-32,000/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 31,857/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 31,936/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 31,897/t, rounded to INR 31,900/t exw.

Click for detailed methodology

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