SteelMint’s daily sponge iron, CDRI, index was assessed at INR 33,450/tonne (t) (- INR 100/t) exw-Rourkela on 29 October, 2022.
About 5,900 t of transactions in CDRI were recorded by SteelMint today against 1,250 t on 28 October.
Even though the index fell, spot trades rose compared to yesterday. Several deals were concluded to the Punjab and Maharashtra markets coupled with an increase in purchase enquiries.
However, market participants are somewhat confused about the price swings because there prevails a general sense of uncertainty on whether current prices would sustain.
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) – Two trades in the range of INR 33,400-33,450/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 33,414/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 34,800 recorded at 10:58 am excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 33,500/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,457/t, rounded to INR 33,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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