SteelMint’s daily sponge iron, CDRI index was assessed at INR 32,250/tonne (t) (- INR 200) exw-Rourkela on 10 November, 2022.
About 1,700 t of transactions were recorded today as against 2,260 t on 9 November.
With few trades reported today, the index decreased. There was little buying interest. The market for semi-finished steel saw little buying activity as well today. Thus, sources told SteelMint, spot buying interest is entirely dependent on market participants’ needs.
Trade dynamics
- Premium grade sponge iron (FeM 81-82%) was sold to Jalna-based buyers at INR 33,800/t exw-Rourkela.
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): Five trades in the range of INR 32,200-32,500/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 32,255/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 32,283/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 32,269/t, rounded to INR 32,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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