SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,000/tonne (t) (- INR 100) exw Rourkela on 30 July, 2022.
About 2,600 t of transactions in CDRI were recorded by SteelMint today against 2,900 t on 29 July.
The index fell slightly today as a sharp correction in semi-finished steel prices was witnessed in north India.
Lack of buying enquiries for sponge iron was seen due to weak sentiments in the spot market. These factors prompted sponge suppliers to lower offers.
Trade dynamics
- Market participants across different markets were mostly inactive amid the price correction in the market. Hence, booked material accordingly and are waiting for the market to stabilize.
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 35,700-36,100/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 36,014/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 35,938/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,976/t, rounded to INR 36,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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