SteelMint’s daily sponge iron, CDRI, index is assessed at INR 32,000/tonne (t) (+ INR 100) exw-Rourkela on 26 December, 2022.
About 4,650 t of transactions were recorded today as against 2,800 t on 24 December.
The index rose as a result of active demand and the rise in prices in north India, particularly Punjab. Due to increased demand, regional providers floated higher offers. Due to increased market activity, producers were able to maintain high price levels.
Following an INR 450/t daily rise in the price of billets in Rourkela, a number of transactions took place today. The market has seen a hike in trade volumes as a result of this positive trend encouraging buyers to take positions.
Overall, it seems that the market is going through a phase of development and recovery, with strong demand and rising prices driving trading activity.
About 2,200 t of sponge iron PDRI (FeM 77-78%) trade was recorded from Odisha today as against 700 t on Saturday. Deals were concluded on DAP Raipur basis.
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) – Eight trades in the range of INR 31,800-32,700/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 31,974/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 32,025/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 32,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply