SteelMint: Rourkela sponge iron index rises on optimistic trends - 7 Dec

SteelMint's daily sponge iron, CDRI index, was assessed at INR 31,700/tonne (t) (+ INR 400) exw-Rourkela on 7 December, 2022.

About 4,250 t of transactions were recorded today as against 9,420 t on 6 December.

Market optimism helped the index to rise. Sources told SteelMint that as a result of the deals that led to today's price increase, manufacturers continued to keep higher prices. In fact, sponge iron market was also supported due to a substantial increase in billets prices. According to assessments, the prices of billets at Rourkela increased by INR 700/t d-o-d.

Sponge iron prices are anticipated to remain strong due to the active trades taking place across markets in several states.

About 2,300 t of sponge iron PDRI (FeM 77-79%) trade was recorded from Odisha today as against 1,500 t yesterday. Deals were concluded on DAP Raipur.

Deals

• Active participation was seen today from Patna-based buyers.
  
  
• Premium grade (FeM 80-82%) sponge iron from Odisha was booked at INR 32,800/t exw-Barbil.
  
  

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 31,500-31,800/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 31,703/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 31,664/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 31,684/t, rounded to INR 31,700/t exw.

Click for detailed methodology

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