SteelMint’s daily sponge iron, CDRI index, was assessed at INR 31,050/tonne (t) (- INR 100) exw-Rourkela on 16 December, 2022.
About 1,500 t of transactions were recorded today as against 1,050 t on 15 December.
Rourkela sponge iron index fell as market participants turned cautious and have been waiting for clearer market directions to emerge before taking any positions. The lack of clarity has resulted in limited spot trades, as participants were hesitant to take decisions without a clear understanding of the market. Despite this, spot trades did increase by 43% compared to the previous day.
The ongoing price volatility in the sponge iron market has made market participants nervous, leading to limited inquiries. They are still unsure about the direction of price movements, adding to the uncertainty in the market.
Overall, the fall in the Rourkela sponge iron index and the limited spot trades can be attributed to the ongoing uncertainty in the market. As participants wait for clearer signals, they are being more cautious in their decision-making, which has led to a slowdown in activity.
About 2,900 t of sponge iron PDRI (FeM 77-79%) trade was recorded from Odisha today. Deals were concluded DAP Raipur.
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) – Four trades in the range of INR 31,000-31,100/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 31,053/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 31,017/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,035/t, rounded to INR 31,050/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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