SteelMint’s daily sponge iron, CDRI, index was assessed at INR 34,100/tonne (t) (- INR 100) exw-Rourkela on 10 October, 2022.
About 2,200 t of transactions were recorded today as against 2,100 t on 8 October.
The index dropped on account of low spot trades and offers softened as a result.
Market participants lacked trust in the direction of price change. Hence, spot trading remained rather constrained. Even though price volatility persists, buyers are procuring material only as per immediate needs.
About 700 t of sponge PDRI (FeM 77-78%) trades in Odisha were recorded today as against 600 t on Saturday. The deals were concluded on DAP Raipur basis.
Trade dynamics
- Participation from Patna-based buyers remained limited and only need-based booking was witnessed today.
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 34,000-34,200/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 34,100/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eighteen offers were reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 34,150/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,125/t, rounded to INR 34,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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