SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,500/tonne (t) (+ INR 1,050) exw Rourkela on 11 July, 2022.
About 8,630 t of transactions in CDRI were recorded by SteelMint today as against 1,300 t on 9 July.
The index rose with producers quoting prices at levels. A rise in billet prices resulted in healthy demand for sponge iron. As per assessment, Rourkela billet prices rose by INR 700/t d-o-d.
As a result, spot trades remained active throughout the day leading to the rise in prices.
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) – Eighteen trades in the range of INR 35,700-36,950/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 36,608/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 36,350/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,479/t, rounded to INR 36,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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