SteelMint’s daily sponge iron, CDRI, index was assessed at INR 33,400/tonne (t) (- INR 50) exw-Rourkela on 31 October, 2022.
About 2,450 t of transactions were recorded today as against 5,900 t on 29 October.
Due to erratic price changes, the index declined marginally, and there were fewer spot trades than usual. However, in the second half of the trading session, there was a rise in purchase enquiries. As there is widespread uncertainty as regards the sustainability of current prices, market sources are worried about price swings.
About 4,300 t of sponge PDRI (FeM 77-78%) trades in Odisha were recorded today. 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) – Seven trades in the range of INR 33,300-33,400/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 33,359/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 33,428/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,394/t, rounded to INR 33,400/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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