SteelMint’s daily sponge iron, CDRI index, was assessed at INR 33,700/tonne (t) (- INR 150) exw-Rourkela on 13 October, 2022.
About 4,050 t of transactions were recorded today as against 5,600 t on 12 October. The index fell on lower bids and limited enquiries.
The market saw a lack of buying interest resulting in fewer deals getting concluded. Buyers were cautious due to the uncertain price trend.
About 4,650 t of sponge PDRI (FeM 77-78%) deals were concluded in Odisha today as against 650 t yesterday. The material was booked by Raipur-based buyers.
Trade dynamics
- Patna-based buyers mostly opted for a wait-and-watch approach amid the price correction in the spot market and hence placed limited orders.
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) – Eight trades in the range of INR 33,600-34,000/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 33,654/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 33,696/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,675/t, rounded to INR 33,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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