SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,850/tonne (t) (+ INR 200) exw-Rourkela on 2 August, 2022.
About 5,830 t of transactions were recorded today against 7,400 t on 1 August.
The index rose on the back of better demand and higher offers floated by suppliers. Producers kept prices upside as several deals took place today following the rise in billets prices by INR 300/t, d-o-d in Rourkela.
Amid positive sentiments, buyers have started taking positions, leading to healthy volumes being traded in the spot market.
Trade dynamics
- Participants from Jalna are actively procuring sponge iron from Odisha in the last couple of days due to the shortage of melting scrap in the region. A deal was concluded at INR 38,300/t exw Rourkela for FeM 82 100% lumps.
- Need-based bookings have been seen from Patna buyers, sources informed.
- Today, deals have also been concluded to Nagpur, Mohda as well as Himachal Pradesh.
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 36,500-37,000/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 36,892/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 36,825/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,859/t, rounded to INR 36,850/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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