SteelMint’s daily sponge iron, CDRI, index was assessed at INR 31,000/tonne (t) (- INR 1,000) exw-Rourkela on 23 November, 2022.
About 2,400 t of transactions were recorded today as against 1,300 t on 22 November.
The index fell on lower bids, and trades remained below-average leading to weakening in offers. Market participants seemed to lack trust in the direction of price changes. As a result, spot trading remained weak. Despite the ongoing price reduction, buyers are acquiring material as per bare necessity.
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 31,000-32,000/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 31,000/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 30,978/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 30,989/t, rounded to INR 31,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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