SteelMint’s daily sponge iron, CDRI, index was assessed at INR 33,650/tonne (t) (- INR 50) exw-Rourkela on 14 October, 2022.
About 2,950 t of transactions were recorded today as against 4,050 t on 13 October.
Because of little buying interest, the market saw few inquiries and trades. The decrease in steel prices in the Punjab market resulted in fewer purchase inquiries, which forced producers to float offers at lower levels. Overall, market participants are still unclear about the price movements.
About 1,900 t of sponge PDRI (FeM 77-79%) trades in Odisha were recorded today as against 4,650 t yesterday. The material was booked by Raipur and Patna-based buyers.
Trade dynamics
- Participants from Bihar procured material as per needs, with freight rates around INR 1,600-1,700/t.
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) – Nine trades in the range of INR 33,500-34,000/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 33,617/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 33,640/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,629/t, rounded to INR 33,650/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply