SteelMint’s daily sponge iron, CDRI index, was assessed at INR 33,000/tonne (t) (- INR 250) exw-Rourkela on 3 November, 2022.
The prevailing index hitting over four months’ low as the earlier the bottom offers of INR 32,500/t were recorded on 25th June, 2022. About 950 t of transactions were recorded today as against 1,600 t on 2 November.
In north India, semi-finished steel prices saw a steep reversal, and there were few buying enquiries for sponge iron as a result of the gloomy spot market atmosphere. Suppliers in the area reduced their offers as a result of these considerations.
Participants in the market are becoming more cautious due to the continued price volatility, which eventually resulted in fewer inquiries. But prices haven’t been stable on the market in a while, and spot trade volumes were impacted as a result of the erratic price changes, SteelMint has learned from sources.
About 800 t of sponge PDRI (FeM 77-78%) trades in Odisha were recorded today. The material was booked by Raipur-based buyers.
Trade dynamics
- Buying activity from Patna-based buyers still remained on the lower side owing to weak finished steel sales.
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) – Four trades in the range of INR 33,000-33,100/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 33,013/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 33,032/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,023/t, rounded to INR 33,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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