SteelMint’s daily sponge iron, CDRI, index is assessed at INR 32,250/tonne (t) (- INR 250) exw-Rourkela on 29 December, 2022.
About 1,400 t of transactions were recorded today as against 5,300 t on 28 December.
The index fell on limited trades today due to lack of buying interest among participants. According to SteelMint, buyers had booked sufficient orders over the past couple of days and are mostly in a holiday mood, leading them to hold back their bids and book only according to immediate requirements. This has resulted in low spot trade volumes, a common feature of market slowdown during a holiday period.
Trade dynamics
- Sponge iron PDRI (FeM 80%) prices in Raipur were assessed at INR 32,000/t. Prices remain stable in the Raipur market but no deals were recorded at higher offers. The market may regain some momentum next week.
- Sponge iron PDRI (FeM 80%) prices in Bellary were assessed at INR 30,350/t exw, with trades of 600 t heard, and CDRI at INR 31,650/t exw with trade volumes of 600 t. Despite reports of a shortage of material (80% lumps) in the Bellary region, weak market sentiments in the semis market weighed on the sponge segment. Trade has dried up due to healthy bookings over the past few days.
- Sponge iron PDRI (FeM 78%) prices in Durgapur were assessed at INR 30,700/t, with 6,700 t if trades recorded in the range of INR 30,500-30,800/t DAP. Spot trades remained moderate in the region and offers fell by INR 300/t. Buyers had already booked sizeable quantities over the last few days, which impacted trade and prices today.
- Sponge iron PDRI (FeM 78%) prices in Ramgarh were assessed by SteelMint at INR 30,150/t exw and trade volumes of 1,900 t were recorded. CDRI was assessed at INR 32,700/t exw and 1,300 t of trades were heard. Slow buying impacted price movement in the semis segment today as sufficient volumes have been booked in the past couple of days.
Going forward, it will be interesting to see if this trend continues or if buyers return to the market with renewed interest.
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) – Four trades in the range of INR 32,200-32,300/t was 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 32,239/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fifteen offers were reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 32,270/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 32,255/t, rounded to INR 32,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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