SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,350/tonne (t) (+ INR 600) exw-Rourkela on 10 August, 2022.
About 5,740 t of transactions in CDRI were recorded by SteelMint today against 6,050 t on 9 August.
The index rose on the back of active demand amidst higher offers floated by the suppliers. Producers kept prices strong as several deals took place today following the hike in billet offers by INR 900/t d-o-d.
Surge in steel prices in the northern region — during the first half of the day — led to active enquiries, while in the late trading hours steel prices in Punjab witnessed corrections, SteelMint notes.
Trade dynamics
- Maharashtra as well as Bihar markets actively procured the material. 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) – Nine trades in the range of INR 36,000-36,700/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 36,411/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these 11 was INR 36,329/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,370/t, rounded to INR 36,350/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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