SteelMint’s daily sponge iron, CDRI, index was assessed at INR 30,450/tonne (t) (- INR 50) exw-Rourkela on 16 November, 2022.
About 600 t of transactions were recorded today as against 2,250 t on 15 November.
The index plunged to a 12-month low; the previous low of INR 30,300/t exw was recorded on 15 November 15, 2021. Spot trades decreased rapidly as a result of poor buying interest and a significant price correction in north India.
Market participants waited for clearer market directions before taking positions, resulting in fewer spot trades and a drop in offers. Due to unpredictable price swings, market participants were less confident about booking material.
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) – Two trades in the range of INR 30,400-30,500/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 30,450/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty one offers reported in the trading window and considered as T2 inputs. The average price of these twenty one was INR 30,454/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 30,452/t, rounded to INR 30,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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