SteelMint’s daily sponge iron, CDRI index was assessed at INR 30,900/tonne (t) (+ INR 200) exw-Rourkela on 29 November, 2022.
About 3,250 t of transactions were recorded today as against 2,950 t on 28 November.
Active demand and higher volumes on offer led to an increase in the index. As a result, several trades took place today. In response to the INR 200/t d-o-d increase in the billet index, producers kept their prices high. Trade volumes grew as buyers took positions in response to this move.
About 1,700 t of sponge PDRI (FeM 77-79%) trades were recorded today as against 3,300 t yesterday from Odisha. Deals were concluded on DAP Raipur basis.
Trade dynamics
- Buyers from the Bihar market were seen booking the material in sizeable quantities with freight charges at around INR 1,600-1,700/t.
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) – Nine trades in the range of INR 30,500-31,500/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 30,870/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 30,973/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 30,922/t, rounded to INR 30,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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