SteelMint’s daily sponge iron, CDRI, index was assessed at INR 33,900/tonne (t) (- INR 100) exw-Rourkela on 28 September, 2022.
About 2,400 t of transactions were recorded today as against 6,300 t on 27 September.
Due to thin trading today, the index inched down. Participants showed little enthusiasm in procuring, which kept spot trade volumes low. SteelMint learnt from sources that purchasers opted to hold back from placing bids because they had filled enough orders yesterday.
In Odisha, sponge PDRI (FeM 77-79) trades totalling about 600 t were recorded today compared to 4,500 t yesterday. The deals were concluded on a DAP Raipur basis.
Trade dynamics
- Buyers from Patna procured material as per their requirements as they had sufficient orders in hand.
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 33,800-34,000/t were recorded during the 11:30 am to 5:30 pm SteelMint trading window and considered for the final price calculation as T1 inputs. The average of these transactions was INR 33,842/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 33,980/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,911/t, rounded to INR 33,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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