SteelMint’s daily sponge iron, CDRI index was assessed at INR 33,250/tonne (t) (- INR 200) exw-Rourkela on 2 November, 2022.
About 1,600 t of transactions were recorded today as against 1,510 t on 1 November.
Due to weak demand and ongoing slow trends, the index declined. Buyers are resisting current offers in the hope that they will become more lenient. This is pushing spot sponge iron prices down.
The main reason why suppliers in the area were forced to lower their offers was weak spot market sentiments.
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 33,200-33,500/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 33,233/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 33,250/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,242/t, rounded to INR 33,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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