SteelMint’s daily sponge iron, CDRI, index was assessed at INR 34,650/tonne (t) (+ INR 50) exw-Rourkela on 13 September, 2022.
About 3,715 t of transactions were recorded today as against 6,100 t on 12 September.
Prices increased as buying conditions improved due to an increase in steel prices in northern India, particularly Punjab.
Buyers began to take positions after taking these factors into account. As a result of today’s trades, which followed a INR 400/t, d-o-d increase in billet offers, producers managed to maintain good prices.
Trade dynamics
- Due to the fact that they had enough orders in hand, buyers in Patna and Jalna booked a sizable quantity today. Also, Jalna-based buyers booked premium grade sponge iron (FeM 81–82%) today at INR 35,900/t ex-Rourkela basis and freight charges to Jalna were at INR 2,300-2,500/t via road delivery.
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) – Eleven trades in the range of INR 34,500-34,800/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 34,595/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 34,668/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,632/t, rounded to INR 34,650/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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