SteelMint’s daily sponge iron, CDRI, index is assessed at INR 32,750/tonne (t) (+ INR 300) exw-Rourkela on 31 December, 2022.
About 2,800 t of transactions were recorded today as against 2,940 t on 30 December.
The index rose on the back of active buying and higher offers throughout the day. The rapid spike in steel prices in the northern region supported sponge iron buying sentiments.
Trade Dynamics
- Sponge iron PDRI (FeM 80%) prices in Raipur were assessed at INR 32,200/t (trade volume: 3,000 t) exw. Active trade was seen in the market today and there was acceptance of higher prices.
- Sponge iron PDRI (FeM 80%) prices in Bellary were assessed at INR 30,500/t exw and a total of 3,200 t was traded. CDRI prices stood at INR 32,000/t exw and trade volumes of 4,250 t were heard. Spot sponge iron prices reached a new level as buying activity remained strong despite greater offers and active inquiries. According to sources, demand for sponge iron is expected to increase further.
- Sponge iron PDRI (FeM 78%) prices in Ramgarh were assessed at INR 30,900/t (trade volume: 2,200 t) exw, while CDRI prices were at INR 33,300/t (trade volume: 1,800 t) exw. As market sentiments improved, buyers were keen to book material. Mill owners are hoping less price corrections in the near term.
Sponge iron prices increased as a result of rising billets prices. Due to decent demand for steel and raw materials, year-end buying will continue to be robust, supporting higher offers today.
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) – Seven trades in the range of INR 32,500-32,800/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 32,773/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 32,761/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 32,767/t, rounded to INR 32,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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