SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,250/tonne (t) (- INR 400) exw-Rourkela on 5 August, 2022.
About 850 t of transactions were recorded today against 2,890 t on 4 August.
A sharp correction in semi-finished steel prices in north India and lack of buying enquiries for sponge iron due to weak sentiments in the spot market prompted suppliers to reduce their offers.
Trade dynamics
- Participants across markets are waiting for a clear trend, resulting in weak spot trades.
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) – Three trades in the range of INR 36,250-36,500/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 36,362/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty offers reported in the trading window and considered as T2 inputs. The average price of these twenty was INR 36,140/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,251/t, rounded to INR 36,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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