SteelMint’s daily sponge iron, CDRI index was assessed at INR 35,000/tonne (t) (+ INR 200) exw-Rourkela on 1 September, 2022.
About 1,400 t of transactions were recorded today as against 1,420 t on 31 August.
The index rose due to an improvement in steel prices in the northern region during the first half today. However, later on, especially with the decline in prices, demand from sponge-makers slowed down.
Trade dynamics
- Limited participation was seen from Patna-based buyers who were waiting for a clearer price trend to emerge.
- Premium grade sponge iron (FeM 81-82%) was offered to Jalna-based buyers at INR 36,200/t exw Rourkela.
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) – Three trades at INR 35,000/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 35,000/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 34,971/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,986/t, rounded to INR 35,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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