SteelMint’s daily sponge iron, CDRI index, was assessed at INR 32,200/tonne (t) (- INR 300) exw-Rourkela on 7 November, 2022.
About 3,400 t of transactions were recorded today as against 770 t on 5 November.
Even though the index fell, spot trades today significantly outperformed Saturday. In response to rising steel prices in the Punjab market, purchase enquiries surged during the second half of the trading session. Although buying interest surged on lower prices, they led to a further fall in the index.
Overall, market participants are still unsure about how prices will change and are just making need-based purchases on competitive prices.
About 3,800 t of sponge PDRI (FeM 77-79%) trades were recorded today as against 1,500 t on Saturday from Odisha. Deals were concluded on DAP Raipur.
Trade dynamics
- Due to low finished steel sales, buying activity from Patna-based buyers is still on the lower side.
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) – Nine trades in the range of INR 32,000-32,300/t was 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 32,250/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers were reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 32,194/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 32,222/t, rounded to INR 32,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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