SteelMint’s daily sponge iron, CDRI index, was assessed at INR 33,850/tonne (t) (- INR 150) exw-Rourkela on 12 October, 2022.
About 5,600 t of transactions were recorded today as against 1,200 t on 11 October.
Even as the index declined, trades increased since a few major purchasers started buying again, leading to an increase in spot trades compared to yesterday. Today’s semi-finished steel market saw little interest from buyers. As a result, sources told SteelMint that the interest in spot purchases is entirely dependent upon market participants’ needs.
About 650 t of sponge PDRI (FeM 77-78%) trades in Odisha were recorded today as against 2,800 t yesterday. The material was booked by Raipur-based buyers.
Trade dynamics
- Buyers from Patna are resisting from booking material owing to dull 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) – Nine trades in the range of INR 33,700-34,500/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 33,825/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 33,888/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,857/t, rounded to INR 33,850/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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