SteelMint: Rourkela sponge iron index rises INR 200 on active demand - 6 Oct

SteelMint's daily sponge iron, CDRI, index was assessed at INR 34,100/tonne (t) (+ INR 200) exw-Rourkela on 6 October, 2022.

About 7,560 t of transactions were recorded today as against 2,300 t on 1 October.

The index increased as a result of active demand and market optimism. Sources told SteelMint that producers managed to keep prices stable, while the rise in the number of transactions led to the increase in prices today.

Billet prices increased which led to strong demand for sponge iron. In the Rourkela market prices increased by INR 250/t d-o-d. Spot trading continued to be remain active throughout the day which led to the rise in prices.

About 3,800 t of sponge PDRI (FeM 77-79) trades were recorded today from Odisha. The deals were concluded on DAP Raipur basis.

Trade dynamics

• Premium grade sponge iron (FeM 81-82%) was sold to Jalna-based buyers at around INR 35,600/t exw Rourkela.
  
  
• Buyer participation from Patna remained robust.
  
  

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) �" Twelve trades in the range of INR 34,000-34,200/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 34,090/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators �" bids/offers/indicative (T2) �" Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 34,062/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,076/t, rounded to INR 34,100/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology