SteelMint’s daily sponge iron, CDRI, index was assessed at INR 29,850/tonne (t) (- INR 600) exw-Rourkela on 17 November, 2022.
About 500 t of transactions were recorded today as against 600 t on 16 November.
With few trades reported today, the index decreased. There was little buying interest. The market for semi-finished steel saw little buying activity as well. Sources informed SteelMint that spot buying interest is entirely dependent on market participants’ needs, and with rising inventories it seems that prices will remain under pressure.
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 29,800-30,000/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 29,840/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 29,891/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 29,866/t, rounded to INR 29,850/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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