SteelMint’s daily sponge iron, CDRI, index was assessed at INR 33,850/tonne (t) (=) exw-Rourkela on 5 July 2022.
About 6,450 t of transactions were recorded today against 2,840 t on 4 July.
The index remained firm on the back of active demand at the current offers. A bunch of transactions were reported in Jalna (Maharashtra) market.
Going forward, the price movement of sponge iron will depend largely on billets and coal prices. Also the availability of sponge iron is a bit of concern in the spot market, sources informed SteelMint.
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) – Eleven trades in the range of INR 33,700-34,300/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 33,802/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 33,907/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 33,855/t, rounded to INR 33,850/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply