SteelMint’s daily sponge iron, CDRI index, was assessed at INR 33,450/tonne (t) (+ INR 50) exw-Rourkela on 19 October, 2022.
About 3,260 t of transactions were recorded today as against 3,110 t on 18 October.
The index increased marginally on moderate demand and firm offers by manufacturers. Billets prices remained steady across all markets, supporting prices of sponge iron.
Market participants are purchasing as per their requirement only. Hence, in terms of bookings in the past few days, spot trade volumes were on a lower side. Today, the procurement was somewhat limited despite rising steel prices in northern India, specifically in Punjab in the first half of the trading session.
About 1,100 t of sponge PDRI (FeM 77-78%) trades in Odisha were recorded today as against 2,000 t yesterday. The material was booked by Raipur-based buyers.
Trade dynamics
- Only need-based bookings were made by Patna-based buyers with freight charges at around INR 1,600-1,700/t.
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) – Nine trades in the range of INR 33,300-33,500/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 33,463/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 33,454/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,459/t, rounded to INR 33,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply