SteelMint: Rourkela sponge iron index stays stable on sustained buying - 7 Oct

SteelMint's daily sponge iron, CDRI, index remained stable at INR 34,100/tonne (t) exw-Rourkela on 7 October, 2022.

About 5,100 t of transactions were recorded today as against 7,560 t on 6 October.

Active demand at current offers lent support to the index, which continued to remain stable. In the Patna market, a handful of transactions were recorded. Today's trading session saw an increase in purchase enquiries, mostly in the second half of the session as a result of rising steel prices in the Punjab market, which encouraged producers to raise offers.

About 5,000 t of sponge PDRI (FeM 77-79%) trades were recorded today as against 3,800 t yesterday from Odisha. Deals were concluded on DAP Raipur basis.

Trade dynamics

• Participants from Bihar were seen to be highly active, and out of the total quantity about 45% of the material were booked by them with freight rates at around 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) - Thirteen trades in the range of INR 33,900-34,500/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 34,098/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 34,092/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,095/t, rounded to INR 34,100/t exw.

Click for detailed methodology

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