SteelMint’s daily sponge iron, CDRI index, was assessed at INR 33,500/tonne (t) (- INR 500) exw-Rourkela on 22 September, 2022.
About 2,100 t of transactions were recorded today as against 4,760 t on 21 September.
Price corrections are making market participants wary, resulting in fewer enquiries. As a result, the index fell d-o-d.
Suppliers were under pressure to sell, which resulted in a significant drop in offers. After placing sufficient orders yesterday, some major buyers have delayed their purchases today.
Trade dynamics
- With sufficient orders in hand, Patna buyers have purchased material solely for their needs.
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) – Five trades in the range of INR 33,500-33,600/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 33,533/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty offers reported in the trading window and considered as T2 inputs. The average price of these twenty was INR 33,515/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,524/t, rounded to INR 33,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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