SteelMint’s daily sponge iron, CDRI, index was assessed at INR 33,750/tonne (t) (- INR 50) exw-Rourkela on 26 September, 2022.
About 2,400 t of transactions were recorded today as against 3,550 t on 24 September.
As only a few trades were reported today, the index decreased. Market participants showed little enthusiasm in purchase and showed caution when it came to price changes. As a result, spot trading remained rather restricted. Even though price volatility persists, buyers are still ordering material according to their needs.
Trade dynamics
- Buyers from Maharashtra received offers for premium grade (FeM 80-82%) sponge iron from Odisha at INR 35,200-35,300/t exw-Rourkela
- Only need-based buying was witnessed from market participants in Patna.
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 33,700-33,750/t were 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 33,706/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 33,811/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,759/t, rounded to INR 33,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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