SteelMint’s daily sponge iron, CDRI, index is assessed at INR 31,250/tonne (t) (- INR 150) exw-Rourkela on 19 December, 2022.
About 1,800 t of transactions were recorded today as against 4,040 t on 17 December.
The index saw a downturn today due to limited trading activity and lack of buying interest. The lack of activity was reflected in the semi-finished steel market, with spot trades remaining low.
According to sources, buyers had already placed sufficient orders and therefore decided to hold back their bids, only purchasing material as per immediate requirement.
Market participants remain uncertain about future price movements and are closely monitoring market developments.
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 31,200-31,500/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 31,217/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 31,271/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,244/t, rounded to INR 31,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply