SteelMint’s daily sponge iron, CDRI index, was assessed at INR 30,950/tonne (t) (+ INR 700) exw-Rourkela on 26 November, 2022.
About 2,300 t of transactions were recorded today as against 1,700 t on 25 November.
The index increased marginally on moderate demand and firm offers by manufacturers. Billets prices remained positive across all markets, supporting prices of sponge iron.
Market participants are purchasing as per requirements. Hence, in terms of bookings over the past few days, spot trade volumes were on the lower side. Today, the procurement was somewhat limited despite rising steel prices in in Punjab in the first half of the trading session.
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 30,800-31,000/t was 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 30,957/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 30,933/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 30,945/t, rounded to INR 30,950/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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