SteelMint’s daily sponge iron, CDRI index, was assessed at INR 34,000/tonne (t) (=) exw-Rourkela on 1 October, 2022. About 2,300 t of transactions were recorded today as against 5,400 t on 30 September.
The index remained steady amid low demand and firm offers by manufacturers. Billet prices remained steady across all markets, supporting the price of sponge iron.
Market participants had already made healthy bookings in past few days, which led to lower trade volumes d-o-d. So, the procurement was somewhat limited despite rising steel prices in northern India, specifically in Punjab.
Trade dynamics
Due to significant volumes booked recently, Patna buyers procured only a certain quantity of the material today.
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) – Six trades in the range of INR 34,000-34,100/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 34,017/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 34,000/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,009/t, rounded to INR 34,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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