SteelMint’s daily sponge iron, CDRI, index was assessed at INR 35,850/tonne (t) (- INR 150) exw Rourkela on 28 July, 2022.
About 4,300 t of transactions in CDRI were recorded by SteelMint today as against 5,150 t on 27 July.
Although the index fell, trades remained supported in the spot market. Steel prices in Punjab saw an uptick later in the day, which led buyers to take positions and book material accordingly.
Trade dynamics
- Buyers from Patna booked a healthy quantity today; most of the bookings took place in the second half of the trading session.
- A few deals were reported in the local market; need-based booking was seen from participants.
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 35,700-36,500/t were recorded during the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 35,795/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 35,896/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,846/t, rounded to INR 35,850/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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