SteelMint’s daily sponge iron, CDRI, index was assessed at INR 31,900/tonne (t) (+ INR 500) exw-Rourkela on 24 December, 2022.
About 2,800 t of transactions were recorded today as against 4,605 t on 23 December.
The index rose due to optimism in the market as producers kept prices high and several deals took place.
In the first half of the trading session, purchase enquiries increased amid rising steel prices in the Punjab market, giving confidence to producers to offer materials at higher prices. Participants from Bihar were active and purchased material in decent quantities, with freight rates around INR 1,600-1,700/t.
About 700 t of sponge iron PDRI (FeM 77-78%) trade was recorded from Odisha today as against 1,100 t from 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 31,700-31,900/t was recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 31,830/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 31,925/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,878/t, rounded to INR 31,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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