SteelMint’s daily sponge iron, CDRI, index was assessed at INR 34,700/tonne (t) (- INR 50) exw-Rourkela on 6 September, 2022.
About 1,600 t of transactions were recorded today as against 1,760 t on 5 September.
Lower bids due to current sluggish trends drove the index lower. The first half of today’s trading session saw a dramatic recovery in prices in the northern region, which prompted suppliers to quote higher offers, forcing buyers to take positions and purchase material accordingly. However, price adjustments, particularly in Punjab, in the second half led to a decline in spot market prices.
Trade dynamics
- Patna-based buyers floated bids at lower levels in the hope that offers would continue to drop. This caused sponge iron spot prices to fall.
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) – Six trades in the range of INR 34,700-35,000/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 34,754/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fifteen offers were reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 34,688/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,721/t, rounded to INR 34,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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