SteelMint’s daily sponge iron, CDRI index was assessed stable at INR 34,000/tonne (t) exw-Rourkela on 21 September, 2022.
About 4,760 t of transactions were recorded today as against 960 t on 20 September.
The index remained constant because buyers refused to accept the previous higher offers. As a result, sellers not only had to lower prices but over yesterday’s offers.
This move encouraged increased buying as steel prices rose in the northern region during the first half today. Thus, buyers began to take positions after taking these factors into account. Gains in spot trade volumes followed as a result of the above.
Because of the above factors, purchase enquiries climbed during the first half of today’s trading session. However, buying interest reduced significantly during the second half of the day.
Trade dynamics
- Bihar participants were active and acquired significant amounts of material.
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) – Ten 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 34.040/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 34,008/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,024/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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