SteelMint’s daily sponge iron, CDRI index was assessed at INR 34,650/tonne (t) (+ INR 50) exw-Rourkela on 10 September, 2022.
About 1,120 t of transactions were recorded today as against 3,150 t on 9 September.
The index increased as steel prices surged in the northern region throughout the day’s first half. Later on, however, demand slowed down, particularly when prices fell.
Trade dynamics
- Patna-based buyers showed little interest since they were anticipating a clearer price trend.
- Jalna-based buyers bid for premium grade sponge iron (FeM 81-82%) at INR 36,000/t, against offers of INR 36,200/t exw Rourkela.
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) – Three trades in the range of INR 34,500-34,700/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 34,575/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 34,707/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,641/t, rounded to INR 34,650/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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