SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,800/tonne (t) (+ INR 450) exw Rourkela on 12 August, 2022.
About 4,250 t of transactions in CDRI were recorded by SteelMint today against 5,740 t on 10 August.
The index rose as manufacturers hiked domestic sponge iron offers and, given decent demand, producers are keeping prices higher.
However, spot trades were reported at lower levels today as buyers resisted higher offers amid sufficient previous bookings.
Trade dynamics
- Buyers from Maharashtra booked premium grade (FeM 81-82%) sponge iron from Odisha at INR 38,500/t exw-Rourkela.
- Needs-based bookings was seen on the part of market participants from Bihar.
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) – Ten trades in the range of INR 36,500-37,300/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 36,815/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 36,814/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,815/t, rounded to INR 36,800/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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