SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,750/tonne (t) (- INR 250) exw Rourkela on 18 August, 2022.
About 1,340 t of transactions in CDRI were recorded by SteelMint today against 2,920 t on 17 August.
In north India, semi-finished steel prices declined today, which was followed by a decrease in buying enquiries because of the gloomy outlook in the spot market.
Trade dynamics
- Before establishing positions, participants awaited the emergence of clearer market directions. Weak trade volumes led suppliers in the area to lower offers.
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) – Five trades in the range of INR 36,500-36,800/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 36,704/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 36,756/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,730/t, rounded to INR 36,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
.jpg)
Leave a Reply