SteelMint’s daily sponge iron, CDRI index, was assessed at INR 31,400/tonne (t) (+ INR 350) exw-Rourkela on 17 December, 2022.
About 4,040 t of transactions were recorded today as against 1,500 t on 16 December.
The index rose on the back of active demand and price recovery in the northern region of India, specifically Punjab. This increase in demand led to higher offers being floated by suppliers in the region. As a result, producers were able to keep prices high due to an increased activity in the market.
Several deals took place in the region today, following a rise in Rourkela billets prices by INR 300-500 per tonne d-o-d. This positive trend has encouraged buyers to take positions in the market, leading to an increase in trade volumes.
Overall, it appears that the market is experiencing a period of recovery and growth, with active demand and higher prices driving activity in the region. It will be interesting to see if this trend continues in the coming days.
About 700 t of sponge iron PDRI (FeM 78-79%) trade was recorded from Odisha today as against 2,900 t from yesterday. Deals were concluded DAP Raipur.
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 31,200-31,500/t was recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 31,352/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 31,473/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,413/t, rounded to INR 31,400/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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