SteelMint’s daily sponge iron, CDRI index was assessed at INR 32,500/tonne (t) (- INR 150) exw-Rourkela on 5 November, 2022.
About 770 t of transactions were recorded today as against 1,550 t on 4 November.
Weak demand, followed by poor steel offtake, contributed to the index’s downward trajectory and, in turn, pressured sponge prices. Due to the gloomy spot market environment, there were limited sponge iron buying enquiries. These factors led to local suppliers in the area lowering their offers.
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 32,450-32,500/t were 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 32,487/t which is given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicative (T2) – Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these 14 was INR 32,482/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw-Rourkela was at INR 32,485/t, rounded to INR 32,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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