SteelMint’s daily sponge iron, CDRI, index was assessed at INR 33,450/tonne (t) (- INR 50) exw Rourkela on 29 June, 2022.
About 1,100 t of transactions in CDRI were recorded by SteelMint today as against 3,120 t on 28 June.
The index fell on limited trades today. There was lack of buying interest among market participants and spot trades remained low.
Buyers booked sufficient material over the past couple of days. Hence, amidst declining billet prices, the majority of buyers decided to hold back their bids and booked material only to meet immediate needs, SteelMint learnt from sources.
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) – Four trades in the range of INR 33,300-33,700/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 33,445/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 33,433/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,439/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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