SteelMint’s daily sponge iron, CDRI, index was assessed at INR 33,000/tonne (t) (+ INR 500) exw-Rourkela on 21 November, 2022.
About 2,600 t of transactions were recorded today as against 3,700 t on 19 November.
The index increased somewhat, but there were very few deals throughout the day due to weak demand. Thus, purchasers only engaged in need-based procurements. Today’s interest in spot purchases were low. Furthermore, low transaction volumes continued to be attributed to unpredictable price movements.
Going forward, market participants are waiting for prices to stabilise.
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 32,800-33,000/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 32,985/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 33,000/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 32,993/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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