SteelMint’s daily sponge iron, CDRI index was assessed at INR 33,800/tonne (t) (+ INR 300) exw-Rourkela on 24 September, 2022.
About 3,550 t of transactions were recorded today as against 5,050 t on 23 September.
The index increased as a result of active demand and suppliers’ higher offers. As multiple transactions took place today in response to the increase in Rourkela billet prices by INR 400/t, d-o-d, producers retained prices on the higher side.
With buyers taking positions in response to this positive shift, modest trade volumes were seen today.
Trade dynamics
- Premium grade (FeM 80–82%) sponge iron was procured from Odisha by buyers from Maharashtra at INR 35,000/t exw-Rourkela.
- Participants from Bihar booked a sizeable volume of 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) – Eight trades in the range of INR 33,600-34,000/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 33,753/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 33,800/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,777/t, rounded to INR 33,800/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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