SteelMint’s daily sponge iron, CDRI index was assessed at INR 30,850/tonne (t), down by INR 200/t exw-Rourkela on 21 December, 2022.
About 1,800 t of transactions were recorded today as against 1,000 t on 20 December.
Although the index fell due to falling steel prices, trades improved as a few buyers resumed purchases, resulting in a rise in spot trades compared to yesterday, SteelMint learnt from sources. However, there was lack of confidence among market participants on prices.
It is not clear what factors may have contributed to the fall in the Rourkela sponge iron index or what the current state of the market for this commodity is. Moreover, changes in demand and supply dynamics can also impact the prices of sponge iron.
About 2,600 t of sponge iron PDRI (FeM 77-78%) trade was recorded from Odisha today as against 500 t yesterday. Deals were concluded on DAP Raipur basis.
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 30,700-31,000/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 30,819/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 30,911/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 30,865/t, rounded to INR 30,850/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply