SteelMint: Rourkela sponge iron index stable on moderate buying - 15 Sep

SteelMint's daily sponge iron, CDRI, index was assessed at INR 34,750/tonne (t) (=) exw-Rourkela on 15 September, 2022.

About 3,100 t of transactions were recorded today as against 4,120 t on 14 September.

The index remained steady on moderate demand and with manufacturers firming up their offers. In different markets today billet prices held steady, supporting sponge iron prices.

Market participants have already booked a sizeable volume of material over the last few days which was the reason for lower trade volumes today on a day-on-day basis. So, procuring remained somewhat constrained despite rising steel prices in north India, especially Punjab.

Trade dynamics

• Patna-based buyers were willing to procure only a certain amount of material today due to significant bookings over the last few days.
  
  

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) - Nine trades in the range of INR 34,500-34,800/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 34,713/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 34,761/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,737/t, rounded to INR 34,750/t exw.

Click for detailed methodology

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