SteelMint’s daily sponge iron, CDRI, index was assessed at INR 34,750/tonne (t) (- INR 350) exw-Rourkela on 5 September, 2022.
About 1,760 t of transactions were recorded today as against 1,620 t on 3 September.
The index fell due to only a few number of enquiries heard and a significant price adjustment in north India. Market trends turned sluggish as a result and spot trades continued to move slow.
Trade dynamics
- The majority of buyers in Patna are reluctant to buy at prevailing prices, which are considered high as there are expectations of further price correction.
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 34,800-34,900/t were 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 34,845/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nineteen offers were reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 34,688/t and given 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,767/t, rounded to INR 34,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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