SteelMint’s daily sponge iron, CDRI, index was assessed at INR 30,700/tonne (t) (- INR 250) exw-Rourkela on 28 November, 2022.
About 2,950 t of transactions were recorded today as against 2,300 t on 26 November.
Even though the index decreased on unclear market trends, trading increased as some buyers began purchases again, leading to an increase in spot trades compared to Saturday. Market participants, however, lacked trust in the direction of price changes. As a result, spot trading remained rather limited. Even though price volatility persists, buyers are still looking for material.
During the first half of the trading session today, prices rose; however, later in the day, a slowdown in steel prices in the north India resulted in a decline in purchase enquiries across regions.
About 3,300 t of sponge PDRI (FeM 77-79%) trades were recorded today from Odisha. Deals were concluded on DAP Raipur and Durgapur basis.
Trade dynamics
- Patna-based buyers booked material to fulfill immediate needs amid subdued finished steel demand.
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 30,500-31,000/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 30,687/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 30,732/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 30,710/t, rounded to INR 30,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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