SteelMint’s daily sponge iron, CDRI index, was assessed at INR 33,400/tonne (t) (- INR 50) exw-Rourkela on 18 October, 2022.
About 3,110 t of transactions were recorded today as against 1,620 t on 17 October.
The index dropped due to lower bids in the market. However, trade volumes increased marginally d-o-d but were still lower than average. Some buyers resumed purchases, leading to an increase in spot trade volumes compared to yesterday. Meanwhile, market participants were still uncertain about the price trend.
About 2,000 t of sponge PDRI (FeM 77-78%) deals in Odisha were recorded today as against 1,300 t yesterday. The material was booked by Raipur-based buyers.
Trade dynamics
- Due to sluggish finished steel sales, Patna-based buyers resisted to purchase sponge iron.
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) – Six trades in the range of INR 33,400-33,700/t was 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 33,432/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 33,397/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,415/t, rounded to INR 33,400/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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