SteelMint’s daily sponge iron, CDRI, index was assessed at INR 35,000/tonne (t) (=) exw-Rourkela on 2 September, 2022.
About 3,400 t of transactions were recorded today as against 1.400 t on 1 September.
Following a significant increase in offers in Punjab, north India, suppliers were encouraged to maintain firm prices as the index continued to remain supported on strong buying activity. SteelMint gathered from sources that spot trading rose significantly on a day-on-day basis by a whopping 143%.
Trade dynamics
- About half the total quantity of deals reported today was booked by buyers from Patna.
- Premium grade sponge iron (FeM 81-82%) was offered to Jalna-based buyers at INR 36,200/t exw Rourkela, but no deals were reported.
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 35,000-35,200/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 35,016/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 34,995/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,006/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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