SteelMint’s daily sponge iron, CDRI, index was assessed at INR 34,000/tonne (t) (+ INR 150) exw-Rourkela on 6 July 2022.
About 4,460 t of transactions were recorded today against 6,450 t on 5 July.
The index rose amid optimistic sentiments in the market. Producers kept prices firm as several deals took place at higher levels.
In addition, strengthening coal prices have further firmed up sponge iron prices.
However, spot trade was comparatively less d-o-d due to dispatches getting delayed amidst logistics issues, 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) – Ten 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 34,046/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 33,969/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,008/t, rounded to INR 34,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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