SteelMint’s daily sponge iron, CDRI, index was assessed at INR 33,700/tonne (t) (+ INR 300) exw-Rourkela on 21 October, 2022.
About 5,400 t of transactions were recorded today as against 1,150 t on 20 October.
The index increased as a result of strong demand and larger offerings by producers. As multiple deals took place today in response to the increase in Rourkela billet prices by INR 300-500/t, d-o-d, producers retained prices on the higher side. As purchasers took positions in response to this favourable shift, trade volumes increased.
About 1,300 t of sponge PDRI (FeM 77-78%) trades in Odisha were recorded today as against 1,200 t yesterday. The material was booked by Raipur-based buyers.
Trade dynamics
- Buyers from Maharashtra booked premium grade (FeM 81-82%) sponge iron from Odisha at INR 34,800-35,000/t exw-Rourkela.
- Participants from Bihar were active and procured sizeable quantities.
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) – Ten trades in the range of INR 33,450-33,950/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 33,702/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 33,668/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,685/t, rounded to INR 33,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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