SteelMint’s daily sponge iron, CDRI, index was assessed at INR 31,000/tonne (t) (- INR 1,000) exw-Rourkela on 14 November, 2022.
About 300 t of transactions were recorded today as against 800 t on 12 November.
The index fell sharply following the continued weakness in spot demand for semi-finished steel products. Sponge iron demand was low as a result of a significant price decline in the billet segment.
Billet prices in Rourkela decreased by INR 1,050/t today. Due to weak spot trades, prices fell throughout the day. The key reason behind lacklustre trade volumes was the price correction seen in major markets.
Trade dynamics
- Going forward, market participants are waiting for prices to stabilise.
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) – One trade at INR 31,000/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 this transaction was INR 31,000/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty one offers reported in the trading window and considered as T2 inputs. The average price of these twenty one was INR 31,047/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,024/t, rounded to INR 31,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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