SteelMint’s daily sponge iron CDRI index was assessed at INR 34,600/tonne (t) (=) exw-Rourkela on 8 September, 2022.
About 1,700 t of transactions were recorded today as against 5,500 t on 7 September.
Although the index was stable today, there was a significant decline in spot trade compared to the day before. The semi-finished steel market saw moderate buying interest which resulted in need-based buying of sponge iron in today’s session, sources told SteelMint. Due to the volatile price movements, market participants were uncertain about purchasing.
Trade dynamics
- Participants from Bihar already booked sufficient material yesterday. As a result, they made need-based booking today.
- Buyers from Maharashtra received offers for premium grade sponge iron (FeM 80-82%) from Odisha at INR 36,300/t exw-Rourkela.
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) – Five trades in the range of INR 34,500-35,000/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 34,580/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty offers reported in the trading window and considered as T2 inputs. The average price of these twenty was INR 34,653/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,617/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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