SteelMint’s daily sponge iron, CDRI, index was assessed at INR 34,000/tonne (t) (+ INR 300) exw-Rourkela on 22 October, 2022.
About 1,900 t of transactions were recorded today as against 5,400 t on 21 October.
The index climbed on the back of an increase in steel prices in Punjab amid positive sentiments. However, demand remained moderate today as buyers made sufficient bookings earlier, resulting in limited spot trades.
About 1,350 t of sponge PDRI (FeM 77-79%) deals in Odisha were recorded today as against 1,300 t yesterday. The material was booked by Raipur-based buyers.
Trade dynamics
- Bihar-based buyers booked material in decent volumes.
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 33,800-34,000/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 33,982/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 33,975/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,979/t, rounded to INR 34,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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