SteelMint’s daily sponge iron, CDRI index, was assessed at INR 33,600/tonne (t) (- INR 50) exw-Rourkela on 15 October, 2022.
About 200 t of transactions were recorded today as against 2,950 t on 14 October. The index edged lower amid sluggishness in the market.
The majority of participants were inactive today which resulted in weak spot trade volumes. Moreover, price correction in key markets remained the main factor behind low trade volumes.
About 1,000 t of sponge PDRI (FeM 77-78%) trades in Odisha were recorded today as against 1,900 t yesterday. The material was booked by Raipur-based buyers.
Trade dynamics
- Going forward, market participants from Patna are waiting for prices to stabilise.
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) – One trade at INR 33,700/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 33,700/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty one offers reported in the trading window and considered as T2 inputs. The average price of these twenty one was INR 33,509/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,605/t, rounded to INR 33,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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