SteelMint’s daily sponge iron, CDRI index was assessed at INR 31,500/tonne (t) (- INR 200) exw-Rourkela on 13 December, 2022.
About 2,600 t of transactions were recorded today as against 1,800 t on 12 December.
Although the index fell on falling steel prices, trades improved as some buyers resumed purchases, resulting in a rise in spot trades compared to yesterday. Spot trades increased about 44%, as per data maintained with SteelMint.
However, there was lack of confidence among market participants about prices.
About 2,000 t of sponge iron PDRI (FeM 77-78%) trade was recorded from Odisha today. 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) – Seven trades in the range of INR 31,500-31,700/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 31,526/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 31,515/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,521/t, rounded to INR 31,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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