SteelMint’s daily sponge iron, CDRI, index was assessed at INR 31,900/tonne (t) (=) exw Rourkela on 21 June, 2022.
About 3,500 t of transactions in CDRI were recorded today against 2,050 t on 20 June.
The index remained stable today. However, trades improved slightly but still remained less than average, resulting in softening of offers.
Market participants were less confident about booking the material due to volatile price movements. Thus, limited spot trades happened. Buyers are making need-based bookings.
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) – Eight trades in the range of INR 31,600-32,000/t were recorded during the 11:30 am to 5:00 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 31,851/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 31,917/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,884/t, rounded to INR 31,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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