SteelMint: Rourkela sponge iron index stays firm on active demand - 23 Sep

SteelMint's daily sponge iron, CDRI index was assessed at INR 33,550/tonne (t) (+ INR 50) exw-Rourkela, on 23 September, 2022.

A much higher volume of about 5,050 t of transactions were recorded today as against 2,100 t on 22 September.

The index showed improvement in spot trades due to active demand and steady offers by manufacturers. All across regions, billet prices held steady, supporting the prices of sponge iron.

Trade dynamics

• Bihar participants were active and acquired material in substantial volumes, with freight costs of INR 1,600-1,700/t.
  
  

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 33,500-33,800/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 33,559/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 33,507/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 33,533/t, rounded to INR 33,550/t exw.

Click for detailed methodology

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