SteelMint’s daily sponge iron, CDRI, index was assessed at INR 34,000/tonne (t) (- INR 100) exw-Rourkela on 11 October, 2022.
About 1,200 t of transactions were recorded today as against 2,200 t on 10 October.
The ongoing price volatility is turning market participants cautious, which is ultimately leading to limited enquiries. The index, as a result, slipped d-o-d.
There was lack of buying interest and spot trades remained low. This prompted sponge iron suppliers in the region to reduce offers.
About 2,800 t of sponge PDRI (FeM 77-78%) trades in Odisha were recorded today as against 700 t yesterday. The material was booked by Raipur-based buyers.
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 34,000-34,350/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 34,000/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 34,015/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,008/t, rounded to INR 34,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
.jpg)
Leave a Reply