SteelMint’s daily sponge iron, CDRI index, was assessed at INR 34,000/tonne (t) (+ INR 250) exw-Rourkela on 27 September, 2022.
About 6,300 t of transactions were recorded today as against 2,400 t on 26 September.
The index rose as a result of active buying triggered by a significant increase in steel prices in Punjab, north India. This pushed suppliers to offer higher prices. SteelMint learnt from sources that spot trade increased dramatically d-o-d by a stunning 163%.
.Trade dynamics
- Buyers from Maharashtra booked premium grade (FeM 81-82%) sponge iron from Odisha at INR 35,000/t exw-Rourkela.
- Bihar participants were active and booked sufficient material, with freight costs at 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) – Eleven trades in the range of INR 33,800-34,200/t were recorded during the 11:30 am to 5:30 pm SteelMint trading window and considered for the final price calculation as T1 inputs. The average of these transactions was INR 34,023/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eighteen offers were reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 33,997/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,010/t, rounded to INR 34,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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