SteelMint’s daily sponge iron, CDRI, index was assessed at INR 33,850/tonne (t) (+INR 100) exw-Rourkela on 4 July 2022.
The index edged higher as manufacturers hiked offers on the back of active demand.
About 2,840 t of transactions were recorded today against 1,300 t on 2 July.
Sources are expecting that sponge iron prices will remain on the higher side on strong buying interest and healthy deals happening in different states along with seasonal low productivity.
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 33,700-34,000/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 33,876/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 33,788/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,832/t, rounded to INR 33,850/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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