SteelMint’s daily sponge iron, CDRI index was assessed at INR 32,000/tonne (t) (- INR 250) exw-Rourkela on 11 November, 2022.
About 1,100 t of transactions were recorded today as against 1,700 t on 10 November.
Due to weak sentiment and ongoing slow trends in the spot market, prices of semi-finished steel in northern India saw a sharp correction, and there were few buying enquiries for sponge iron, which caused the index to decline. These factors caused regional sponge suppliers to lower their offers.
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 32,000-32,100/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 32,018/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 32,000/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 32,009/t, rounded to INR 32,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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