SteelMint’s daily sponge iron, CDRI, index was assessed at INR 29,400/tonne (t) (- INR 450) exw-Rourkela on 18 November, 2022.
About 1,200 t of transactions were recorded today as against 500 t on 17 November.
The index fell on lower bids and spot trade volumes remained lower then average resulting in offers softening further. Market participants seemed to lack trust in the direction of price swing. As a result, spot trading remained weak. Despite the ongoing reduction in prices, buyers are still booking material to satisfy immediate requirements.
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) – Three trades in the range of INR 29,400-29,800/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 29,489/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 29,300/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 29,395/t, rounded to INR 29,400/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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