SteelMint’s daily sponge iron, CDRI index remained more or less flat with an INR 50/tonne dip seen on 12 September, 2022. The index was assessed at INR 34,600/tonne (t) exw-Rourkela today.
About 6,100 t of transactions were recorded today as against 1,120 t on 10 September.
Demand for sponge iron was low in the first half, but picked up in the late trade hours, and many deals for Jalna (Maharashtra), western India were concluded, according to sources.
The index remaind stable because spot trade significantly outperformed Saturday’s volumes in the latter half of the day as finished steel prices in the north saw a recovery.
Trade dynamics
- Premium grade (FeM 80–82%) sponge iron was bought by buyers from Maharashtra for INR 35,300–36,000/t ex-Odisha. Approximately, 42% of the total quantity was booked by buyers from Jalna.
- Bihar participants were active and acquired a substantial amount of material.
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) – Thirteen trades in the range of INR 34,500-34,750/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 34,582/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 34,593/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,588/t, rounded to INR 34,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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