SteelMint’s daily sponge iron, CDRI index was assessed at INR 32,000/tonne (t) exw-Rourkela on 12 November, 2022.
About 3,300 t of transactions were recorded today as against 1,100 t on 11 November.
The index remained unchanged as a result of weak demand and continuing slow trends. Current offers are being resisted by buyers in the hopes that they will become more lenient. This is putting pressure on the spot prices of sponge iron. Weak spot market sentiments were the key factors forcing suppliers in the area to reduce their offers.
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 31,900-32,000/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 32,000/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 32,013/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 32,007/t, rounded to INR 32,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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