SteelMint’s daily sponge iron, CDRI index was assessed at INR 32,350/tonne (t) (+ INR 150) exw-Rourkela on 8 November, 2022.
About 2,700 t of transactions were recorded today as against 3,400 t on 7 November.
The index recovered slightly due to an improvement in bids on rallying steel prices in the northern region today. However, later on, demand with sponge -makers slowed down amid higher offers. Market participants were less confident about booking the material due to volatile price movements. Thus, limited spot trades happened. Only need-based bookings are being made by buyers.
About 1,800 t of sponge PDRI (FeM 77-79%) trades were recorded today as against 3,800 t yesterday from Odisha. Deals were concluded on DAP Raipur basis.
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 32,300-32,400/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 32,341/t which is given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicative (T2): Fifteen offers were reported in the trading window and considered as T2 inputs. The average price of these 15 was INR 32,370/t and given 50% weightage in the final price calculation.
The final price for sponge CDRI exw-Rourkela was at INR 32,356/t, rounded to INR 32,350/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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